Free Essay

Blue Ridge

In: Other Topics

Submitted By thuydnpham
Words 1064
Pages 5
BLUE
RIDGE
MANUFACTURING
 ACTIVITY‐BASED
COSTING
AND
CUSTOMER
PROFITABILITY
ANALYSIS


1.
Allocate
SG&A
Costs
to
SG&A
Activities
SG&A
Costs Administration Selling TOTAL Actitives
&
Costs
allocated
 Enter
P.O Commissions Shipping
Activities Invoicing Cost
to
Make
Sales
Calls Checking
Credit Samples,
Catalog
Info Special
Handling
Charges Distribution
Management Marketing
by
Customer
Type Advertising/Promotion Marketing Administrative
Office
Support Licenses,
Fees TOTAL Total
 Shipping Sales Marketing
 Other Assigned Note 












 17,000 












 37,400 










 20,400 










 56,100 









 130,900 From
Table
3 












 15,500 










 117,800 












 9,300 










 12,400 









 155,000 












 32,500 










 155,200 










 29,700 










 68,500 









 285,900




















‐ 


















‐














 85,360 
















‐
55.00%














 6,850 











92,210 Percentage
x
Total
Cost
Of
Each
Function
10.00%














 15,520 
















‐
10.00%


















‐













15,520














 21,125 


















‐
65.00%


















‐ 
















‐












 10,275 











31,400
15.00%




















‐ 


















‐ 


















‐




















‐












 13,700 











13,700
20.00%














 46,560 
















‐
30.00%














 6,850 











53,410
10.00%




















‐


















‐














 6,850 













6,850
10.00%
















1,625 


















‐
5.00%














 2,970 
















‐
10.00%















4,595
















1,625 


















‐
5.00%


















‐














 3,425 













5,050
5.00%
















3,250 


















‐
10.00%














 2,970 
















‐
10.00%















6,220 













7,760 













8,910




















‐ 


















‐
















7,760 
















‐
5.00%


















‐




















‐














 8,910 
















‐
30.00%
















4,875 


















‐
15.00%












 14,850 












 3,425 











23,150
50.00% 5.00%




















‐ 


















‐




















‐ 


















‐


















‐ 
















‐












 13,700 











13,700
20.00%














 3,425 













3,425
5.00%














 32,500 










 155,200 










 29,700 










 68,500 









 285,900
100.00% 100.00% 100.00% 100.00%

2.
Allocate
SG&A
Activities
to
Customer
Type
(Large,
Medium,
Small)
Cost
Driver
and
Its
Consumption
Rate Units
Sold
‐
Total Units
Sold
excl.
Special Units
Embroidered Units
Dyed Order
Received Shipments
Made Invoice
Sent Accounts
with
Balance
>60
Days Sales
Volume
Revenue
($) Customer Activities
&
Cost
Allocated Enter
P.O Commissions Shipping
Activities Invoicing Cost
to
Make
Sales
Calls Checking
Credit Samples,
Catalog
Info Special
Handling
Charges Distribution
Management Marketing
by
Customer
Type Advertising/Promotion Marketing Administrative
Office
Support Licenses,
Fees TOTAL Large Medium Small 










 100,250 












 58,544 







117,406 












 99,770 












 55,118 







116,812
36.72% 14.24% 47.98% 2.18% 2.26% 2.00% 0.75% 38.09% 0.81% 20.29% 15.51% 23.21% 13.83% 14.20% 13.46% 8.21% 22.67% 15.62% 42.99% 70.25% 28.80% 83.99% 83.54% 84.54% 91.04% 39.24% 83.57%

Total 276,200 271,700
100.00%

Note From
Table
1
















5,959 














6,490 










 29,394 












 20,536 














9,935 










 12,328 

















133 

















845 












 5,130 

















147 

















923 












 5,431 

















112 

















754 












 4,737 






















 




















 1 11 















122 










 308,762 










 183,744 







318,024 






















 

















154 















824 8

41,843
100.00%

42,799
100.00%

6,108
100.00%

6,501
100.00%

5,603
100.00%

134
100.00%

810,530
100.00%

986
100.00%
















2,008 












 12,757 










 77,446 










 92,210
2.18% 13.83% 83.99%

Cost
Driver/Consumption
rate (From
Table
4) Orders Revenue
(Medium
Customers) Shipments Invoices Revenue
(Large
Customers) Percent
Accounts
>60
Days Revenue Mgmt
Estimated
(20%M,
80%S) Revenue Revenue Mgmt
Estimated
(25%M,
75%S) Units
Sold
excl.
Special Units
Sold
excl.
Special Revenue
(Medium
Customers) (A)














 15,520
100.00%












 15,520



















710 














4,458 










 26,232 










 31,400
2.26% 2.00% 14.20% 13.46% 83.54% 84.54%



















274 














1,844 










 11,583 










 13,700 












 53,410
100.00%












 53,410






















 51 

















562 












 6,237 












 6,850
0.75% 38.09% 8.21% 22.67% 20% 38.09% 38.09% 22.67% 22.67% 25% 36.72% 36.72% 20.29% 20.29% 91.04% 39.24% 80% 39.24% 39.24% 75% 42.99% 42.99%
















1,750 














1,042 












 1,803 












 4,595 














1,010 












 4,040 












 5,050 














2,369 














1,410 












 2,441 












 6,220 














2,956 














1,759 












 3,045 












 7,760 














2,228 












 6,683 












 8,910 














8,501 














4,696 












 9,953 










 23,150 














5,031 














2,779 












 5,890 










 13,700 














3,425
100.00%














 3,425














 77,060 












 53,490 







155,350 







285,900

3.
Customer
Profitablity
Analysis

Revenues
 Price
($) 


Regular
(Unit
Sales) 








(Revenue) 


Mid‐size 







(Revenue) 


Hand 







(Revenue) 


Special 







(Revenue) TOTAL
REVENUE Manufacturing
Cost
 


Regular
(Unit
Sales) 








(Mfg
Cost) 


Mid‐size 








(Mfg
Cost) 


Hand 








(Mfg
Cost) 


Special 








(Mfg
Cost) TOTAL
MFG
COST Customizing
Cost
 



Units
Inked 







(Cust.
Cost) 


Units
Embroided 






(Cust.
Cost) 


Units
Dyed 






(Cust.
Cost) TOTAL
CUSTOMIZING
COST Selling
&
Administrative
Cost
 Total
Cost
 Gross
Profit
 Unit
Cost
($) 0.0817 










 200,500 












 16,381 1.2770 














5,959 














 7,610 0.1100 












 20,536 














 2,259 












 26,249 







117,088 












 9,566 












 6,490 












 8,288 












 9,935 












 1,093 










 18,947 







234,812 










 19,184 










 29,394 










 37,536 










 12,328 












 1,356 










 58,076 









 552,400 











45,131 











41,843 











53,434 











42,799 













4,708 









 103,272 From
Table
1
&
2 2
color
per
towel,
Cost
x
Unit
Inked Cost
x
Unit
Embroided Cost
x
Unit
Dyed (D) Unit
Cost
($) 1.19 












 27,250 












 32,428 1.03 












 36,640 












 37,739 0.89 












 35,880 












 31,933 1.44 

















480 

















691 










 102,791 










 16,600 










 19,754 










 18,552 










 19,109 










 19,966 










 17,770 












 3,426 












 4,933 










 61,566 










 10,550 










 12,555 










 10,308 










 10,617 










 95,954 










 85,399 















594 















855 







109,426 











54,400 From
Table
1
&
2 











64,736 Cost
x
Unit
Sales 











65,500 











67,465 









 151,800 









 135,102 













4,500 













6,480 









 273,783 (C) Large 3.60 












 27,250 












 98,100 3.20 












 36,640 










 117,248 2.55 












 35,880 












 91,494 4.00 

















480 














 1,920 










 308,762 Medium 










 16,600 










 59,760 










 18,552 










 59,366 










 19,966 










 50,913 












 3,426 










 13,704 







183,744 Small 










 10,550 










 37,980 










 10,308 










 32,986 










 95,954 







244,683 















594 












 2,376 







318,024 











54,400 From
Table
1
&
2 









 195,840 Price
x
Unit
Sales 











65,500 









 209,600 









 151,800 









 387,090 













4,500 











18,000 









 810,530 (B)














 77,060 










 53,490 







155,350 









 285,900 From
(A) 










 206,101 







134,002 







322,853 









 662,955 From
(A+C+D
=
E) 










 102,661 










 49,742 (4,828) 









 147,575 From
(B‐E)

Profit
per
Customer
 



No
of
customer
 



Profit
per
customer

Large Medium Small 


















 












 8 154 












 824 $12,833 $323 $(6)

Total 986 $150

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Swot Analysis Guide

...operations. Availability of cheap resources. Advantage of a highly efficient and effective distribution networks. AKS-Labs ▪ 2501 Blue Ridge Road Suite 150 ▪ Raleigh ▪ NC ▪ 27607 www.measurebusiness.com support@bscdesigner.com Business Analysis Methods Guide SWOT Analysis Guide Copyright © AKS-Labs Page 3 Weaknesses • • • • • • No patents. Weak or no brand developed. Low customers satisfaction. High cost structure. Expensive natural resources. Poor distribution networks. As you have probably noticed, strength and weaknesses are exactly the opposites of each other. It is true in a lot of real cases when the strength for one company is a weakness for another. If one has an access to cheap energy and other company doesn’t, the former has the strength over the latter. Strengths - Strong brand - Cheap resources Weaknesses - High costs - No patents Opportunities - Technology - Low trade barriers SWOT Threats - Regulations -Trade barriers Opportunities • • • • Underutilized customer market; there is a room to grow and generate revenue. Modern technologies. Relaxed regulations. Globalization. Since there are fewer barriers, companies may expand. Threats • • • • Changing consumer needs and wants. Substitute products and new entrants. Regulations. Trade barriers. Business Analysis Methods Guide AKS-Labs ▪ 2501 Blue Ridge Road Suite 150 ▪ Raleigh ▪ NC ▪ 27607 www.measurebusiness.com support@bscdesigner.com SWOT Analysis......

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