Business Case Paper On Baldwin Bicycle Company Submitted in partial fulfillment For the requirements in Management Accounting (ACC510M) AY 2010-2011‚ 3rd Trimester Submitted to: Professor Jolly B. Cruz Submitted by: Presenting Group 5 Kelvin L. Go Elmer V. Dela Cruz Joshua G. Soriano Jeffrey T. Tabangcura Kristian Jewel P. Taiño Grace Taguinod 26 February 2011 CASE BACKGROUND Baldwin Bicycle Company (BBC) is a mid-range full-line bicycle manufacturing company with 40
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Baldwin Bicycle Case Study 1. The relevant costs are those that occur in the future and differ for each feasible alternative. These relevant costs should be compared to the current situation at Baldwin in order to evaluate the decision to join with Hi-Valu: Per units cost $83.90 R&D Cost (5000/25000) 0.2 Other variable costs** 18.44 Total $102.54 ** 5.5% of assets Added estimate of monthly inventory cost to balance sheet info to estimate avg assets 2 months materials (25000
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After our discussion we decide to accept the order of Hi-Valu Company‚ due to analysis and compare below. Advantages Outstanding profit Assume that Baldwin Company accepted the orders of Hi-Valu Company to make profits. In this condition‚ we should know whether Hi-Valu Company had enough short term assets to cover its short term debt. Therefore‚ we should calculate Working Capital ($) of Baldwin Company: The cost of each finished product in the first year: Materials + labors + variable
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| Baldwin Bicycle Case Study | Strategic Cost Managment | | Submitted to-Mr. Suneel Maheshwari | | By- Sourabh Dhawan- Nooruddin Hussain Nimisha Rathi Tulika Singhal | 1. What is the relevant cost of manufacturing a challenger bike? Present Situation | | | | Total Revenue | | 10872000 | | Units sold | | 98791 | | P.U Price | | 110.0505 | | | | | | | | | | Hi Valu Proposal | | | | Material | 39.8 | | |
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Baldwin Bicycle Company Introduction Given the case study “Baldwin Bicycle Company” this paper will discuss whether the company should use relevant costing to reach a decision on a new contract they have been offered. In determining this we will discuss the relevant costing assumptions and see if and why they apply to High Value’s proposal. The type of decision It is a once of decision for Baldwin because they have to decide whether to take a new contract from Hi-Valu that will change the selling
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Case Study: Kootenay Bicycle Company Prepared for: Cam Shackelton Feb 13‚ 2007 EXECUTIVE SUMMARY Kootenay Bicycles (Kootenay) build custom frame or bike in a large metropolitan area in western Canada since 2002. Although sales have been steadily increasing since inception‚ it has not been successfully translated to profits. Signs of operational inefficiencies‚ lack of financing and limited expandability limits its growth. This report analyzes Kootenay’s current
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these locks may not be up to standard. This is the reason you should seek the services of a reliable service provider when getting your locks made. Baldwin is a lock company that is known to make good locks. Many people have hired its services before and have enjoyed the results. The following are some of the reasons why Baldwin a good lock company: 1. It has been in the industry for many years. It was actually founded in 1946.It is still operational even up to date.
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a. How Baldwin currently compete on the basis of Michael Porter’s (1980) competitive strategies: Customers: Major customers of Baldwin are those who had passion in riding bicycles‚ Baldwin offered wide range of product with 10 models for kids to adults. Hi-Valu was a potential buyer for bikes wanted to purchases bikes from Baldwin at lower prices than wholesale prices under a brand name called “Challenger”. Secondly‚ Hi-Valu wanted the Challenger bike to be somewhat different in appearance from
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Competition Page 4 History Page 5 Marketing Page 6 Accessories Page 7 SWOT Analysis Page 8 Works Cited Page 9 Executive Summary Statement of the Problem- Schwinn is not attracting the younger market and its sales are suffering because of increasing competition and loss of market share especially in the mountain bike market segment. Background- Schwinn is a bicycle brand that for years had 25 percent of the market. Schwinn did not adapt to the mountain bike
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Baldwin Cycle Case 1. Relevant Cost: Direct Material $39.8 Direct Labor $19.6 Variable Overhead(@40% of $24.5) $9.8 Total Relevant Costs $69.2 2. 2-months Raw material for 25‚000 bikes @ $38.9 $165‚833 WIP Inventory(1000 @ $69.2) $69‚200 Finished Goods(500 @ $69.2) $34‚600 A/R (30 days) @(25‚000/12*92.29) $192‚270 Total Inventory Costs $461‚904 Relevant Asset Cost (@5.5 %) $25‚405 Total Relevant Asset Cost $487‚309 Interest @ 18% $87‚716 Net Relevant Cost $399‚593 Price Per
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