Preview

Display Resolution

Good Essays
Open Document
Open Document
563 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Display Resolution
Answers
1. What sourcing decision for the X73 materials is in the best interest of: a) The Electronic Components Division (ECD)? While we assume the other two supplies won’t source components from ECD, apparently the sourcing decision would favour ECD if HighResolution is selected (€ 3600) since the capacity is not full yet

b) The Imaging Systems Division (ISD)?
|Target Price of X73 |€340,000 | |
| | | |
|Manufacturing Cost |HighResolution |Display Tech. Inc. |
|Display |€140000 |€105000 |
|Other Components |€72000 |€72000 |
|Conversion (Fixed) |€117700 |€117700 |
|Conversion (Variable) |€26300 |€26300 |
|GP for ISD |€-16,000 |€19,000 |

After putting all costs incurred in manufacturing of X73, if ISD select HighResolution as the supplier, the gross profit is negative, if display tech is selected, it will be positive. It’s obviously choosing Display Tech. as the supplier would fit the best interest of ISD.

c) The High Resolution Division? It is obvious that High Resolution would be benefited if he is selected as the supplier of the display (€35000).

d) MedQuip AG as a whole? As attached profit for 3 divisions are calculated in their respect, while we taken into account all benefits for the whole group by adding up benefits all 3 divisions, the benefit to the group is €22600 compared to €19000 if display tech. inc is selected. Therefore, High Resolution should be selected if we solely consider
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Powerful Essays

    Egt 1 Task 1 Marginal Analysis
    • 801 Words
    • 4 Pages

    Egt 1 Task 1 Marginal Analysis

    In the first approach, Company A first determines its total revenue by multiplying the number of widgets sold by the price of the widget. Next it determines its total cost which comprises of the sum of all costs including fixed and variable costs. Company A’s profit is then calculated by total revenue minus total cost. However, in an effort to maximize their profit, Company A would look to produce it’s widgets at the output level where the margin between total revenue and total cost is the largest resulting in the greatest profit.…

    • 801 Words
    • 4 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Natureview Farm Case Summary
    • 599 Words
    • 3 Pages

    Natureview Farm Case Summary

    However, the risk was very high with a comprehensive advertising plan (cost the company annual $1.2 million per region), the SG&A would increase by $320000 per year, $120000 would go towards additional marketing…

    • 599 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Caja Espana
    • 999 Words
    • 4 Pages

    Caja Espana

    Use the adjustment rates in Exhibit 6 to calculate the profit of the Gradefes and Madrid-Barrio de Salamanca branches, according to the procedure described in the profitability analysis section of the case.…

    • 999 Words
    • 4 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Home Page
    • 1246 Words
    • 4 Pages

    Home Page

    Introduction: | Below is business memorandum to the CEO of Company G. Below is a chart that full meets the expectations of the task that was give. Each ratio is explained and the formulas used are listed along with the ratio finding. 1. That information is used to understand what our current trend and if it indicates a strength, weakness, no concern. Final Justification of identification of each ratio or trend as a strength, weakness, or no concern is given. 2. No outside sources where used to find the industry data quartiles because those numbers where already given on the attached “Statement Analysis Template Sheet” and we have assumed that the facts are current. | | |…

    • 1246 Words
    • 4 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Negotiation: Risk and Condor
    • 616 Words
    • 3 Pages

    Negotiation: Risk and Condor

    d. What is Jewel’s new reservation price, i.e., the most it will pay for Condor’s Z2 CPU? Assume that Jewels makes decisions on the basis of Expected Monetary Value (EMV)…

    • 616 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Tman 540 Midterm Exam
    • 1784 Words
    • 8 Pages

    Tman 540 Midterm Exam

    One is to automate the p process with a new machine, a second is to outsource the production , and the third is to perform a multi enhancement of the present process. The net earnings of this product in year 1 for all three alternatives is forecast at $500,000. The net earning automated alternative are expected to increase 15% annually in years 2‐10 due to increased quality. The for the outsourced alternative are expected to increase by 10% annual in years 2‐10 due to reduced cost. earning for the "Enhance" alternative are expected to arithmetically grow $60,000 annually in years 2‐10 d combination of continuous improvements in cost and quality. The investments and forecasted net earnings for each are shown below. Since the timing of the investme vary greatly over the 10 year time horizon, the CEO has specified that the annual worth criterion using a M be used to choose the best solution from a financial perspective. (She and her staff will consider other no criteria). Provide a financial analysis and recommended solution for the CEO. Investment Costs Automate Outsource Enhance MARR Automate Net earnings Investment Costs Cash Flow Outsource Net earnings Investment Costs Cash Flow Enhance Net earnings Investment Costs Cash Flow Present Worth Automate Outsource Enhance Annualized Worth Automate Outsource Enhance 0 $900,000 $250,000 $0 14% 0 ($900,000) ($900,000) 0 ($250,000) ($250,000)…

    • 1784 Words
    • 8 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Managerial Economics - Midterm Study Guild
    • 928 Words
    • 4 Pages

    Managerial Economics - Midterm Study Guild

    a) At what level of output are the firm’s profits maximized? Please explain your answer (the explanation should include the definition of “marginal revenue” and “marginal cost”). (6 marks) b) When the firm produces 106 units of output, its total cost is $1,400. What is the firm’s profit for the level of output determined in part (a)? (3 marks)…

    • 928 Words
    • 4 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Hilton Manufacturing - Baylor
    • 272 Words
    • 2 Pages

    Hilton Manufacturing - Baylor

    * 4. Answer 3 Profit is dependent on Total Contribution, because a product with higher contribution margin but lower sales won’t be able to give profits to the company. Hence, Actual total contribution decides profitability of the product. Thus, Product 101 is the most profitable product.…

    • 272 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Superior Manufacturing Case
    • 473 Words
    • 2 Pages

    Superior Manufacturing Case

    As we know from the case, the Superior is implementing the standard cost system which was introduced in early 2005---“Next year’s standard costs were last year’s actual per unit costs adjusted for anticipated cost changes”. By looking at Exhibit 2 and Exhibit 4, we could compare the level of all the costs under the items. The applicable way is to focus on “Variances” which indicate the degrees of changes of all the direct and indirect costs between 2004 & 2005. In addition, the mark of “+” indicates favorable and positive improvement and the mark of “-“indicates unfavorable and negative declines. Therefore, we could obviously observe the major changes in the company are mainly Rent (+259), Indirect Labor (+213) and Depreciation (+642), others factors remain comparatively small different from last years. We could thus conclude that these 3 factors are the main reasons that enabled Superior to improve profitability.…

    • 473 Words
    • 2 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Baldwin Bycycle Company
    • 493 Words
    • 2 Pages

    Baldwin Bycycle Company

    3. There is no better offer and this one will give the best financial contribution. Susanne hasn’t had any better offers and her balance sheet has shown that her “sales volume had declined in the last two years”. The new contract from Hi-Valu could increase this sale volume and therefore, give the…

    • 493 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Economics 130: Exam 3 Study Guide
    • 3065 Words
    • 14 Pages

    Economics 130: Exam 3 Study Guide

    a. The total revenue made from selling each extra unit of output as per the price at Line B.…

    • 3065 Words
    • 14 Pages
    Powerful Essays
    Read More
  • Good Essays

    Dell Inc. Case Study
    • 2009 Words
    • 16 Pages

    Dell Inc. Case Study

    Traditionally the company outsourced its various components parts from suppliers in order to provide competitive prices to the customer. The strategy was once a very successful, but keeping in view the present market conditions, this eliminates the company differentiation, because the outsourced firm provides the same component part to other competitors and may not offer the quality parts Dell is expecting.…

    • 2009 Words
    • 16 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Reader´s club
    • 490 Words
    • 2 Pages

    Reader´s club

    An editorial company that sells books, is in an expansion period and the management has decided to…

    • 490 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Resolution
    • 451 Words
    • 2 Pages

    Resolution

    RESOLUTION REQUESTING THE RMTU ADMINISTRATION TO RELEASE THE SUPREME GOVERNMENT STA. CRUZ CAMPUS (SSG-SC) FUND COLLECTED FROM THE STUDENTS FOR THE FIRST SEMESTER 2012-2013.…

    • 451 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    My Resolution
    • 230 Words
    • 2 Pages

    My Resolution

    I have decided to put my God first, to study more hard and work equally hard as well. I want to eat healthy and be a good girl. I have decided to tidy my room more often. I intend to chat less in class. I decided to make decisions that really bring happiness.…

    • 230 Words
    • 2 Pages
    Satisfactory Essays
    Read More

Related Topics