Nobody downloaded yet

Bilston case study - Essay Example

Comments (0) Cite this document
REPORT TO: Joe Major, President : Bilston Fasteners Company. From: Subject: Variable Cost Assignment Costing is an important part of the decision making activities of management. The research focuses on the determining the fixed and variable portions of organisations’ financial reports…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.7% of users find it useful
Bilston case study
Read TextPreview

Extract of sample "Bilston case study"

Download file to see previous pages . In addition, the company must characterized some of the costs as fixed costs. The fixed cost are electricity, general and administrative, rent, depreciation expense, interest expense, and other factory costs. The company must some fo the costs as fixed costs. The variable cost are labor cost, raw materials, and repairs (Abele 2008). II. The standard contribution marging includes the variable costs and the fixed costs elements. Table 1 shows that the contribution margin for the wood screws is .0117. This is arrived at by deducting the variable costs from the revenues. The variable costs are the labour cost, raw materials costs, and the repairs costs. Table 2 shows that the contribution margin for Self Taffers is 0.0251. This is arrived at by deducting the variable costs from the revenues. The variable costs are the labour cost, raw materials costs, and the repairs costs. Table 3 shows that the contribution margin for the wood screws is .0118. This is arrived at by deducting the variable costs from the revenues. The variable costs are the labour cost, raw materials costs, and the repairs costs. Display of the company’s Profit and loss account for 2009 in contribution format. Table 4 shows that company’s profits and loss account for 2009 for its wood screws products. The company generated profit of 295 for the said year. Table 5 shows the revenues of its self taffers products for the year 2009. Table 6 shows the company’s Nuts and Bolts division’s profits and loss account for 2009 for its wood screws products. The company generated a loss of (219) for the said year. Table 6 shows the revenues of its self taffers products for the year 2009. The above discussions show that the company did not fare well in the two remaining product lines. On the other hand, the company did well in one of the three products scrutinized (Besley, 2008). III. Discussion of the company’s proposal to drop one of its failing products. Starting in January 2010 (based on 2009 figures). The company should not drop the nuts and bolts in January 2010 if the basis for the dropping is the 2009 annual income statement result. Continuing with production of the nuts and bolts generates a lesser loss of only 219.00 However, dropping the nuts and bolts section of the company’s production department would force the company to continue paying the fixed expenses. The fixed expenses are higher than the net loss of only 219.00 (Dubrin, 2008). IV. Discussion on whether the company should reduce prices of the wood screws to ?2.25 in the second half of 2010. The company should drop the price from to the lower 2.25. The lower price will generate a higher volume of revenues from 750 units to the higher 1,000 units. In addition the results of operations at 2.25 is higher than the results of operations for the prior higher selling price of 2.45 (Khan, 2006). V. The company’s total company profit forecast for second half 2010 assuming the price of woodscrews is dropped to ?2.25, again taking account of the variances. Table 7 shows that company’s woodscrews products will be sold at a lower selling price of ?2.25. The table 7 financial statement shows that reducing the price from 2.45 to 2.25 is a good management decision. The reduction in the selling prices generates an in crease in the revenues by 250,000 units. The results of operations for the 2.25 price is better than the result sof operations pegged at 2.45 price (Moyer, 2009). IV. Long term prospects for Bilston.The fixed ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Bilston case study Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Retrieved from
(Bilston Case Study Essay Example | Topics and Well Written Essays - 1000 Words)
“Bilston Case Study Essay Example | Topics and Well Written Essays - 1000 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Bilston case study

Case study

...? Implementation of Information System Number: Due: Introduction often have the mandate to select software within their budget and this is a requirement from the developers. Therefore the decision for Worplestrop to conduct a cost analysis for its software development is vital. This decision is important to Worplestrop so that it is able to do away with software providers that are more costly or risky in relation to the business needs. The intention of the software to be given a cost estimate for the provision of their service is to eliminate such solution providers that do not meet the preliminary cost criteria (Blaike 2008). Having a reliable cost estimate in place for the Worplestrop company would be important... Implementation of...
5 Pages(1250 words)Essay

Case study

... Analysis of the Operations of Garden Ltd Part Stakeholder analysis A stakeholder is any group or individual whoseactions can have an impact on or can be impacted by an organisation’s performance (Freeman 1984). In order to be successful at making changes to the organisation the management at Garden City Ltd needs to be able to identify its stakeholders and where possible gain an understanding of their man interest and any potential for conflict. It is also important that the level of influence and power as well as their importance and likely impact on the business as a result of their action or inaction is known. The table below represents analysis of six of the company’s stakeholders. Table - Initial Stakeholder Analysis... Analysis of the...
6 Pages(1500 words)Essay

Case Study

...?Case Study Table of Contents Table of Contents 2 Task One 3 Task Two 5 Task Three 6 Work Cited 7 Task One The Human Resource (HR) manager of a medium sized company, because of unfavorable condition of the HR Department, is expected to motivate as well as improve the performance of the employees for the attainment of the objectives pertaining to the company. The task of the HR manager is to ensure that the entire workforce comprising 25 staffs who are employed on full time basis are performing in an efficient manner. The employees who are to be recruited needs to be provided with proper training as along with developing their morale for superior performance and acceptance of their duties. The HR manager...
3 Pages(750 words)Case Study

Case Study

...above evaluation product development strategy would fit SAB more as it would enable it to protect its existing market from competitors, maintain its reputation and increase its market share at less cost compared to other options (Birgham & Daves , 2009). References Birgham E F and Daves P R, 2009: Intermediate Financial Management, ( 10th ed), Cengage Learning, OH  Donald D, 2008, Mergers, Acquisitions, and Other Restructuring Activities. New York: Elsevier, Academic Press. pp. 740 Hal Lux, 'Miller time (Mergers and Acquisitions). (South African Breweries acquires Miller Brewing Co.)', “Institutional Investor International Edition, vol. 28, no. 1 (2002)”. Hobday,N 'Tapped out', The Daily Deal, 8 September (2003). N. Chaloner and D....
4 Pages(1000 words)Essay

Case Study Analysis Paper Case Study

...CASE STUDY ANALYSIS REPORT Case study analysis paper Amber Jeffiers of Phoenix ABC Inc. faces several problems and what could be the route cause How did things go wrong was the question that haunted Carl Robins. He had recruited 15 people in early April from campus for his company but when the time came for inducting these new recruits several things were missing. He had assured Operations Supervisor, Monica Carrolls, to have all the new hires working for her by July. With his head down on the table he's now thinking what went wrong. He wouldn't have recollected what the management and lifestyle book told: "To begin with the end in mind means to start...
2 Pages(500 words)Case Study

Case study Case Study

...Assignment (Answers in Bold) Part A The following questions were answered based on the case of: Peter Smythe v Vincent Thomas [2007] NSWSC844 (3 August 2007) Available at: Question 1: In what court was the case heard (1 mark) The case was heard in the New South Wales Supreme Court. Question 2: Name the judge and explain his title. (2 marks) The judge is named Rein, and Rein is an administrative judge as evidenced by the title AJ. Question 3: Name the plaintiff and defendant and their counsel. (4 marks) The plaintiff is Peter Smythe and the defendant is Vincent Thomas. The plaintiff's counsel is B. Kasep,...
6 Pages(1500 words)Case Study

Case studies Case Study

... Paper Question In Roth, the Court refuses to find a protected liberty interest because the plaintiff was "simply not rehired." Does the Court mean to suggest that the plaintiff was not injured by the non-renewal What are the implications of non-renewal for a faculty member's career path P.242 In Board of Regents of State Colleges v. Roth, the Supreme Court held that a non tenured teacher does not have a property interest in his or her teaching position. Likewise, the Supreme Court also found that a public college professor dismissed from an office held under tenure provisions, and college professors and staff members dismissed during the terms of their contracts, have property interests in continued employment. Thus because... Paper...
4 Pages(1000 words)Case Study

Case study analysis - will upload case study

..., but over and above, they themselves admitted that one would not have been so successful in the absence of the other. (Yoffie, 2009, p. 1) This notion quite obviously reflects the strategic decisions, which the two companies often come up with to capture the different unexplored segments of the market. However the carbonated soft drinks industry in the United States of America suddenly declined as the annual consumption of carbonated soft drinks decreased in US, and in the year 2004 it reached a constant low. (Yoffie, 2009, p. 1) The two companies definitely got affected by the downward trend of the industry, but in different ways. This particular case study analyzes the strategic management decisions...
10 Pages(2500 words)Case Study

Case study Case Study 6

...Case Study 6 – Examining the Role of the Program Goals and Objectives on Evaluation Process With the sample shown for the case of eleven out of seventy smoking participants who quit with no relapse during the evaluation, the smoking cessation approach, while within hours of work, reflects the measure of the feasible extent to which desired results may be achieved and exist with stability in relation to meeting the standards of the program objectives. Since the provision is offered to target an improved quality of life and to extend its length, such goal is to be detected not as a mere end but in the course of each stage at which progress is anticipated (Posavac). The trial period of the...
3 Pages(750 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Bilston case study for FREE!

Contact Us