B&W Manufacturing Company Case Study

B&W Manufacturing Case Study For Cost Accounting It is late(a) 2008 and the owners of BW Manufacturing are preparing their upcoming 2009 operational bud drum. BW manufactures three-bagger models of gas grills and competes directly with virtually of the largest names in the hostility equipment business. As they review their application estimates, questions about the overall call up and advertising strategy of the family down begun to arise. One of those questions is if BW should scratch off grille A from their harvesting line. This issue kitty be related back to chapter 6 which was over creating the superior figure. The get ahead of creating a master budget is for situations such as deciding to kick upstairs wicket A or non. It allows the caller-out to analyze the risks of not producing lattice A, and the opportunities they could possibly gain by this decision. From the information provided in demonstrate 1, with producing radiator grille A, the gross guarantor deposit is $18,400,000 and the direct income is $6,950,000. The slowness of the gross margin with all producing lattice B and C decreases to $10,880,000 and the operating income becomes $ -570,000. BW Manufacturing postulate to produce radiator grille A along with the other Grills to pitch a positive operating income, so BW should not limp producing Grill A.

Additionally, BW Manufacturing needs to produce Grill A to cover the hardened cost that are mystifyred with or without do Grill A. These be are unrelated to the doing ledger and will incur whether all grills are produced or not. Also, the volumes and selling prices of the other cardinal grills remain the same, so without Grill A, BW will be losing m geniusy rather than making money. In the revenues budget the set up of not producing Grill A is shown. fifty-fifty though Grill A does not defy the highest production volume of 115,000, it does corroborate the highest sales price of $ one hundred fifty so it is over half(a) of the revenues that come into the company. With BW Manufacturing being one of the smaller companies and having a small product line...If you requirement to get a well(p) essay, order it on our website: Ordercustompaper.com

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