TOTAL PRODUCT CURVE: A curve that graphically represents the relation between total production by a firm in the short run and the quantity of a variable input added to a fixed input. When constructing this curve‚ it is assumed that total product changes from changes in the quantity of a variable input (like labor)‚ while other inputs (like capital) are fixed. This is one of three key product curves used in the analysis of short-run production. The other two are marginal product curve and average
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CASE STUDY NOTES/ ANALYSIS THE TRUE COST OF ACQUISITION. INTRODUCTION -The department of defense has highlighted its vision and mission but has not broken these down into objectives for each function - Without a breakdown of this mission into workable action plans/ objectives it is therefore very hard to create performance measure and standards of practice - This is evident by the recent happening of Darlene Druyun’s actions while acting in the position of head of procurement - There
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Wilkerson Company 1. What is the competitive situation faced by Wilkerson? The critical product in term of market competition is the pumps of Wilkerson Company. The pumps are Wilkersons major product line with a production of about 12‚500 units per month. Pumps currently have the lowest gross margin among all products‚ because competitors had been reducing prices on pumps and Wilkerson adopted its prices in order to remain competitive and to maintain the volume. 2. Given some apparent problems with
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related to Wilkerson Company‚ which is a manufacturer of a few products supplied to manufacturers of water purification equipment. The three products they manufacture are: 1. Valves- high quality and highest tolerances in the industry; this product is what the company started from. 2. High-volume pumps- quickly became a major supplier of pumps; they manufacture and spend more machine hours on producing this product 3. Flow controllers- most unique and highest selling product. Wilkerson Company would
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1. Wilkerson company ‘s major productions are pumps‚ valves and flow controllers. Pumps: The competitors had been reducing prices on pumps. Since pumps were a commodity product‚ the company matches the reduced prices to maintain volume. However‚ it has dropped pre-tax margin to less than 3%. Valves: Although several competitors could match its quality‚ none had tried to gain market share by cutting price‚ the gross margin had been maintain at standard 35%. Flow controllers: There was much more
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com/nikunjj_1/d/70869811-Solution-to-Wilkerson Management Accounting for Multinational Companies Solution to the Wilkerson Case Igor Baranov Executive Summary Taking into account the difference among product and high proportion of overheads‚ Wilkersonshould abandon its existing cost system and move to activity-based costing. The profitability analysisindicates that the company earns healthy margins on pumps and valves. However‚ the margin of flow controllers at actual usage of capacity is negative. Wilkerson should
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| | | Mabuhay Products Inc.Submitted by:Michelle MolasAdrian ManlapigAngela NunezKatrina Silvoza | | | Point of View_________________________ This case was analyzed from the point of view of Robert Ocampo‚ the inventory manager of Mabuhay Products Incorporated. Case of Context_______________________ Mabuhay Company Incorporated owns 50 grocery outlets scattered around the metro but has only one main warehouse where all the goods are stored prior to delivery. The current
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given by the following relationship: Q = 400 – 0.5P where P is price and Q is quantity demanded. Total costs of production (including a “normal” return on owners’ investment) per month are: C = 20‚000 + 50Q + 3Q2 a. Express total profits (() in terms of Q. b. At what level of output are total profits maximized? What price will be charged? What are total profits at this output level? c. What market structure did you assume? Why? d. Would your answers
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between marginal cost and marginal product. Marginal cost is the additional cost attributed to an additional unit produced. Marginal product is the increase in the total product due to an additional resource allocation. The marginal cost and marginal return have an inverse relationship and can almost be represented as mirror images of each other. The peak of the marginal product corresponds with the lowest point of the marginal cost. Thus as marginal product increases
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1 In a process cost system‚ product costs are summarized: on job cost sheets. when the products are sold. after each unit is produced. on production cost reports. What decision criteria should managers use in selecting projects when there is not enough capital to invest in all available positive NPV projects? the internal rate of return the discounted payback the profitability index the modified internal rate of return 3 Horizontal
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