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Groovy Music Company - Essay Example

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Summary

In the essay “Groovy Music Company” the author focuses on the company to get their operational management staff to prepare a budget that addresses major areas of concern to their business. The budget would help Groovy Music to estimate their regular demand…

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Subject: Business
Type: Essay
Level: High School
Pages: 2 (500 words)
Downloads: 3

Extract of sample "Groovy Music Company"

Number of machine hours required to produce 230,000 discs = 230,000 / 50 = 4600 hoursNumber of machine hours required to produce 10,000 discs = 10,000 / 20 = 500 hoursTotal hours required = 4600 + 500 = 5100 hoursBut, total machine hours available = 5000 hoursTherefore, it would not be possible to take up the special order without sacrificing regular units of 5000 (100 hours x 50 units)ParticularAmount ($)Revenue (400,000 + 1,250,000)1,650,000Less: Total Operating Costs (given)1,280,000(a) Net Profit370,000(b) Total Operating Assets (given)1,400,000Return on Investment (a/b x 100)26 %Considering just the ROI, it can be concluded that the Service Division has performed

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