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Bill French Case Inc

In: Business and Management

Submitted By Macabuhay
Words 3521
Pages 15
University of the Philippines Diliman
Extension Program in Pampanga
Claro M. Recto Highway, CSEZ, Angeles City, Pampanga

BILL FRENCH
CASE ANALYSIS

Calamiong, Yna Marie
Espejo, Jean
Macabuhay, Minorka
Salenga, Darlene
Samia, Mark
Valloyas, Hazel Marie

BACKGROUND OF THE STUDY
Bill French is a staff accountant at Duo Products Corporation. He has been doing routine types of analytical work and is reporting to his boss, Wes Davidson; a controller of the said company. French was a business school graduate and was considered by his associates to be quite capable and unusually conscientious. It was this latter characteristic that had apparently caused him to “rub some of the working folks the wrong way,” as one of his co-workers put it. French was well aware of his capabilities and took advantage of every opportunity that arose to try to educate those around him. Davidson’s invitation for Bill to attend an informal manager’s meeting had come as a surprise to others in the accounting group. However, when French requested permission to make a presentation of some breakeven data, Davidson agreed. Duo Products had not been making use of this type of analysis in its planning procedures.
Basically, what Bill French had done was to determine the level at which the company must operate in order to break even. According to him, the company must be able to at least sell a sufficient volume of goods so that it will cover all the variable costs of producing and selling the goods. In addition to that, according to French, it will not make a profit unless it covers the fixed costs as well. The level of operation at which total costs are just covered is the breakeven volume. This according to Bill French should be the lower limit in all their planning.
The accounting record had provided the following information that French used in constructing his chart:
Plant...

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