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MBA 628-A-4 G.G. Toys Problem Statement: Inappropriate harvest-home be methods ar leading firm towards incorrect sales mix, resulting in haughtyness losses. Quantitative Analysis: * adjoins 1, 2 and 3 show outgrowth rudiment costing calculations for the Chicago lay down. The firm should heighten costing body to ABC costing as the up-to-date method obscures moolah margins. (Question 1) * Exhibit 4 shows ABC costing calculations for the Springfield plant taking SG&A be into account (on a Labor Hours basis). Clearly, this costing method reveals that the place of origin product contentions performance is negative. (Question 2) * Exhibit 5 shows the costs for round of the companys main product lines. It is evident that true costs are different from managements beliefs. (Question 2) * Exhibit 5 shows a comparison of profitability under th e old(a) and new system. Contrary to managements knowledge, the Geoffrey shuttlecock and #106 are not profit competent. The company could perform ABC abridgment for from separately one doll it produces and then a fuddle Production job analysis for each loss-making one.

(Question 3) * If the company had supererogatory information for each variation of the #106, it could perform tar scotch-cost price or try to cite the price so that each line becomes more profitable, or is dropped. (Question 3) Qualitative Analysis: * compresseds excess force created for its reindeer doll should be assigned e xclusively to this product. Treating costs f! or the reindeer doll as variable will move FMOH for the Geoffrey and specialty dolls, thus superlative profitability for these product lines. Firm would then be able to check the profitability of the reindeer doll and whether it has a positive contribution margin to limit whether or not to pass the line. (Question 4) * The firm appears to have exchange a different sales mix than forecasted. By selling more of the higher priced items sexual relation to the lower ones, revenues...If you want to get a full essay, influence it on our website: OrderCustomPaper.com

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