BRANT FREEZER COMPANY

Topics: Cost, Costs Pages: 1 (254 words) Published: February 15, 2015
BRANT FREEZER COMPANY

1: When comparing performance during the first five months of 2013 with performance in 2012, which warehouse shows the most improvement?

St. Louis is the only one showing any improvement, using cost per unit shipped as the performance criterion.

2: When comparing performance during the first five months of 2013 with performance in 2012, which warehouse shows the poorest change in performance?

Denver was the worst in terms of cost per unit handled. It is also the most expensive public warehouse that Brant uses.

7: Prepare the firm’s 2005 warehousing budget, showing for each warehouse the anticipated number of units to be shipped and the costs.

Again, this can be done in several ways. One is to assume that the 2013 to 2005 increases will be exactly the same amount as the 2012 to 2013 increases (with units shipped rounded to the nearest hundred, and costs rounded to the nearest $500). This would yield the following results: Warehouse

Differences in units shipped b/w 2012 and 2013
Units shipped
 in 2013
Projected units shipped in 2005
Difference in warehouse costs b/w 2012 and 2013 ($)
Warehouse costs in 2013 ($)
Projected warehouse costs in 2005 ($)
Atlanta
600
18,000
18,600
21,000
178,000
199,000
Boston
300
7,200
7,500
9,500
73,000
82,500
Chicago
1,900
30,000
31,900
38,500
285,000
323,500
Denver
100
3,100
3,200
3,000
31,000
34,000
Fargo
0
2,000
2,000
500
17,000
17,500
LA
500
17,000
17,500
24,000
176,000
200,000
Portland
700
9,000
9,700
12,000
85,000
97,000
St. Louis
2,100
8,000
10,100
4,000
56,000
60,000
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