BILL FRENCH CASE Question 1: What are the assumptions implicit in Bill French’s determination of his company’s break-even point? The following assumptions are implicit in Bill French’s determination: • He has assumed that there is just one breakeven point for the firm (by taking the average of the 3 products) • He has also assumed that the sales mix will remain constant • He has also assumed that the sales mix will remain constant. Total revenue and total expenses behave in a linear
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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
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BILL FRENCH Bill French picked up the phone and called his boss, Wes Davidson, controller of Duo-Products Corporation. “Wes, I’m all set for the meeting this afternoon. I’ve put together a set of break-even statements that should really make people sit up and take notice – and I think they’ll be able to understand them, too.” After a brief conversation, French concluded the call and turned to his charts for one last checkout before the meeting. French had been hired six months earlier
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Managerial Economics MBA 204 030 BILL FRENCH, ACCOUNTANT Bill French picked up the phone and called his boss, Wes Davidson, controller of Duo- Products Corporation. “Say, Wes, I’m all set for the meeting this afternoon. I’ve put together a set of break –even statement that should really make the boys sit up and take notice- and I think they’ll be able to understand them, too.” After a brief conversation about other matters, the call was concluded and French turned to his charts for one last
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1) * * Ele assumiu que há apenas um ponto de equilíbrio para a empresa ( pela média dos 3 produtos) * Ele também assumiu que o mix de vendas permanecerá constante * Ele também assumiu que o mix de vendas permanecerá constante . A receita total e as despesas totais se comportam de forma linear ao longo do intervalo relevante * Uma vez que a capacidade está sendo expandida para
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Table of Contents Issues 1 Facts 1 Analysis 2 Conclusion/Recommendations 4 References/Bibliography 5 Issues 1. What are the assumptions implicit in Bill French’s determination of his company’s break-even point? 2. On the basis of French’s revised information, what does next year look like: a) What is the break-even point? b) What level of operations must be achieved to pay the extra dividend, ignoring union demands? c) What level of operations must be achieved to meet the
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BILL FRENCH I. BACKGROUND AND ISSUES Bill French was staff accountant of Duo-Products Corporation. He was reporting to Wes Davidson and had been doing routine types of analytical work. In an informal manager’s meeting, Davidson invited Bill French to attend. French choose to present break-even data to determine the level at which the company must operate in order to break-even. During the meeting, French was challenged and questioned because his presentation failed to consider some aspects of
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Strategic cost analysis & management: Case Study Bill French Accountant Takeaways Bill French, aggregated BEP basic Sales volume Unit sales price (+) Sales revenue Unit var. cost (-) Total VC (=) Contribution margin (-) Fixed cost (=) Operating profit (-) Taxes (=) Net Profit after taxes Dividends (=) Net Profit 1 076 406 1,159 1 247 400 0,56 607 401 640 000 640 000 0 0 0 0 0 basic+ dividend 1 328 688 1,159 1 539 760 0,56 749 760 790 000 640 000 150 000 75 000 75 000 75 000 0 basic+ union 1
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Case Study Analysis : Bill French Based on Break Even Point INTRODUCTION * Bill French was a Staff Accountant in Duo-Products Group. * He used to report directly to his boss, Wes Davidson(Comptroller). * He wanted to do use Break-even analysis for the planning procedures, which was first of its kind for the Duo-Products Group. * Basically what French had done was to determine the level at which the company must operate in order to break even. * As he put it, 1. The company
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Bill French Case 16-3 Introduction French, a staff accountant who was hired six months was well aware of his capabilities and took advantage of every opportunity that arose to try to educate those around him. Then, he was requested permission to make a presentation of some break-even data. The Duo-Products Corporation had not been making use of this type of analysis in its planning or review procedures. What French had done was to determine the level at which the company must operate in order
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