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MBA 628-A-4 G.G. Toys Problem Statement: Inappropriate intersection be methods ar leading firm towards incorrect sales mix, resulting in positivity losses. Quantitative Analysis: * adjoins 1, 2 and 3 show setoff rudiment costing calculations for the Chicago lay down. The firm should flip costing body to ABC costing as the catamenia 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 birthplace 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 vigilances beliefs. (Question 2) * Exhibit 5 shows a comparison of lucrativeness under the old(a) and new system. Contrary to managements knowledge, the Geoffrey biddy and #106 are not profit adequate. The company could perform ABC compendium for from from each one one doll it produces and then a beading Production job analysis for each loss-making one.

(Question 3) * If the company had supernumerary 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: * pissed offs excess force created for its reindeer doll should be assigned exclusively to this pr oduct. Treating costs for the reindeer doll ! as variable will move FMOH for the Geoffrey and specialty dolls, thus gentility profitability for these product lines. Firm would then be able to check the profitability of the reindeer doll and whether it has a confirmative contribution margin to limit whether or not to slide by the line. (Question 4) * The firm appears to have exchange a different sales mix than forecasted. By selling more of the higher priced items congener to the lower ones, revenues...If you want to get a full essay, edict it on our website: OrderCustomPaper.com

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