Introduction
Thicket Wood Ltd. is a well-known, high quality custom and handcrafted manufacture of kitchen cabinets. It is located in Kitchener, Ontario and sold most of
To assume role of Chris Mell, CMA, and prepare a report for the President and CEO Andrew Mayd. This report will advise him on how to address issues facing organization and items discussed at the management meeting.…
The Dawson Lumber Company was founded in the 1870s by the Dawson family to market the lumber on their land. In 1950, Dawson Lumber owned four small lumber yards in the Corn…
The current production process that Thicketwood Ltd is utilizing can no longer keep with the demand of custom kitchen cabinets. Management must implement a new step to the production line to increase efficiency; however, they must also maintain quality as the customers that are purchasing these cabinets expect top quality for the amount of money they are paying.…
National Bank of Canada ("NBC" or "the Bank") is tasked with the decision to review Dawson Lumber Company Limited 's ("Dawson") request for an increase in its line of credit up to the amount of $10.8mm. Dawson intends to finance inventory and receivables with the line of credit. NBC must remain cognizant of the competitive landscape of the lumber industry and assess whether a focus on the retail segment is beneficial to Dawson 's strategic plan. Given that Dawson is one of the region 's largest borrowers, NBC must be careful in how it manages this relationship. The Bank cannot afford to turn away NBC 's business. However, extending Dawson additional credit may increase Dawson 's default risk and jeopardize the potential for NBC to retrieve the $4.2mm term loan it is already owed.…
7. A plant manager is attempting to determine the production schedule of various products to maximize profit. Assume that a machine hour constraint is binding. If the original amount of machine hours available is 200 minutes., and the range of feasibility is from 130 minutes to 340 minutes, providing two additional machine hours will result in the:…
Brunswick Plastics, located in Canada, is an injection molding company. Brunswick Plastics produces 50 different products; however, they are not reaching capacity. Production required multiple labor hours, and since they weren’t at capacity, they were finishing a little above breakeven. The Division Manager of Brunswick Plastics, Michael Smith was informed of an opportunity for his company and must make a decision on whether or not to venture into this opportunity. Mr. Smith was informed of a project of producing 150,000 milk crates. He can place a bid for the project. However, Mr. Smith isn’t confident in the information that he has, and needs answers to best estimate the costs of producing the additional units. The costs that he knows are as follows:…
Chabros is a leading producer and supplier of wood and veneer and a distributor of a wide range of interior and exterior products that have been specified and used in major high-end projects throughout the Middle East for over 40 years. With an aim to cater to the innovative needs of woodworking professionals, architects & interior designers as well as contractors, Chabros has established overseas production units and distribution points throughout the Middle East Region, targeting businesses that are in search for quality products and exceptional service.…
This assignment consists of two case studies, the Simpson and Selph Ltd and the Fly – by – Nights Airlines. Case Study 1: The Simpson and Selph Ltd, a small carpet manufacturing company located in Macon, Georgia. The Simpson and Selph Ltd are faced with a replacement of their carpet – binding machine. The Machine to be replaced was purchased five years ago and has depreciated to zero. They have two carpet – binding machines to choose from, the Harley Model, same brand they are replacing and the Davidson. Brian Douglas, a corporate financial analyst for Simpson and Selph Ltd is charged with evaluating the replacement of a carpet – binding machine. They have two sets of the Harley and the Davidson. Brian Douglas needs to do a financial analysis to consider and choose the appropriate machine for the company. Brian must advise on what machine to be bought that would be a more viable option. Case Study 2: The Fly – by – Night Airlines, a major commercial air carrier offering passenger service between most large cities in the United States. One of its profitable routes is between Los Angeles and New York. Due to the intense competition on this route, Fly – by – Night Airlines considers upgrading the quality of the fleet of Aircraft used on the Los Angeles to New York route. James “Red” Baron is a supervisor of transcontinental operations for Fly – by – Night Airlines. As it has in the past, Fly – by – Night Airlines plans to purchase all its new planes from Puddle Jumper Aircraft Company. At the…
Treetop Forest Products Ltd is a sawmill operation in Oregon, USA, that is owned by major forest products company but operates independently of headquarters. It was built thirty years ago and was completely updated with new machinery five years ago. Treetop has one general manager, sixteen supervisors and support staff, and 180 unionised employees. The mill is divided into six operating departments: boom, sawmill, planer, packaging, shipping and maintenance. And packaging department is separate from the rest of Treetop operations.…
Marketing: In business, firm marketing generates the revenues that the financial people manage and the production people use in creating goods and services. The challenge that faces marketing is to generate those revenues by satisfying customers’ wants at a profit and in a socially responsible manner.…
Problem 1 The Commonwealth Company uses a job-order cost system and applies manufacturing overhead cost to jobs using a predetermined overhead rate basedon the cost of materials used in production. At the beginning of the year, the following estimates were made as a basis for computing the predetermined overhead rate: manufacturing overhead cost,$186,000; direct materials cost,$155,000. The following transactions took place during the year (all purchases and services were acquired on account): a. b. c. d. Raw materials purchased,$96,000. Raw materials requisitioned for use in production (all direct materials), $88,000. Utility bills incurred in the factory,$17,000. Costs for salaries and wages incurred as follows: Direct labor, $174,000 Indirect labor,$70,000 Selling and administrative salaries, $124,000 Maintenance costs incurred in the factory,$12,000. Advertising costs incurred,$98,000. Depreciation recorded for the year, $75,000 (75% relates to factory assets and the remainder relates to selling and administrativeassets). Rental cost incurred on buildings, $80,000 (80% of the space is occupied by the factory, and 20% is occupied by sales and administration). Miscellaneous selling and administrative costs incurred, $12,000. Manufacturing overhead cost was applied to jobs. Cost of goods manufactured for theyear, $480,000. Sales for the year (all on account) totaled $900,000. These goods cost $550,000 to manufacturee. f. g. h. i. j. k. l.Requirements: Prepare journal entries on the following page to record the information above.1MANAGEMENT 122 Problem 1 Solution: Account a. Raw…
The firm is contemplating a plant modernization to upgrade existing equipment, which should increase the plant’s output while lowering energy costs. Using the current equipment, around 1.500 pounds of salmon can be processed each hour, while the new plant would be able to processed each hour, while the new plant would be able to process 2.000 pounds per hour. The updated equipment is made by the same manufacturer as the existing equipment, and the new equipment quickly. For this reason, costs to train personnel are assumed to be negligible. The production manager, Bjorn Pedersen, is skeptical about undergoing the plant modernization. The older equipment, he argues, is already paid for, and new equipment would cost $10.000 per week. This cost is comprised of both principal and interest, and includes manufacturer installation of the equipment. The controller, Maret Karlsen, cautions that all decisions related to costs should be included in the analysis and that because the energy consumption would be different, this must also be accounted for in the decision. Energy costs are presently $10 per unit,…