Bridgeton Industries: Automotive Component & Fabrication Plant Answer 1: The primary competitions for Automotive Component & Fabrication Plant (ACF) of Bridgeton Industries were local suppliers and other Bridgeton plants. The ACF sold all of its production to the Big-Three domestic automobile manufacturers. As the US automobile market was growing and was dominated by the domestic automakers, the ACF experienced a period of healthy profitability. However, in the 1980s the competitive environment
Words: 354 - Pages: 2
Bridgeton Industries Automotive Component and Fabrication Plant The union has worked with us and has even led in cost reduction programs. Now corporate is talking about outsourcing additional products. What more can we do to keep the business? mike lewis, plant manager The Automotive Component and Fabrication Plant (ACF) was the original plant site for Bridgeton Industries, a major supplier of components for the domestic automotive industry. The history of the
Words: 2151 - Pages: 9
1. Provide your best estimate of the cost and profitability of Wilkerson’s three product lines using: a. Wilkerson’s existing cost system b. an activity-based cost model using the information in the case 2. What causes any shifts in reported product costs and profitability? 3. Based on your analysis in Question 1b, recommend three distinct actions that Wilkerson’s managers could implement to improve profitability? 4. What concerns, if any, do any have with the cost estimates you prepared
Words: 486 - Pages: 2
Case Summary Foreign competition and the oil crisis experienced in the 1970s has caused cutbacks in the automotive parts and manufacturing industry and pressure to meet stricter emissions standards. Maintaining costs and profit margins has become more difficult amid a climate of outsourcing and discontinuations. #2 Overhead Rate The difference in overhead allocation has occurred due to the outsourcing of muffler/exhausts and oil pans. Since there are fewer products to absorb fixed costs the
Words: 688 - Pages: 3
9-104-073 REV: APRIL 26, 2005 ROBERT S. KAPLAN Midwest Office Products John Malone, general manager of Midwest Office Products (MOP) was concerned about the financial results for calendar year 2003. Despite a sales increase from the prior year, the company had just suffered the first loss in its history (see summary income statement in Exhibit 1). Midwest Office Products was a regional distributor of office supplies to institutions and commercial businesses. It offered a comprehensive product
Words: 1694 - Pages: 7
Bridgeton Industries: Automotive Component & Fabrication Plant (ACF) Description The ACF was a major supplier of components for the domestic automotive industry as all of its production was sold to the Big-Three domestic automotive manufacturers. The ACF gone through different industrial uses until the founder of Bridgeton purchased it and it became the original plant site for Bridgeton Industries in the early 1900s. The ACF faced the competition from local suppliers and other Bridgeton plants
Words: 411 - Pages: 2
Latino City known as Bridgeton. Now if you have heard about Bridgeton, most the things you heard haven't been good, and if you haven't, that's to be expected. Bridgeton has been branded as a low-income city where high school dropouts and crime are prominent. Coming from this community not much is expected from students in the city school system. At least a third of the students that attend the city’s high school don't graduate every year. Out of the graduates from the Bridgeton high school only half
Words: 455 - Pages: 2
Bridgeton Industries: Automotive Component & Fabrication Plant In the early 1900s, the Automotive Component & Fabrication Plant (ACF) was the primary production site for Bridgeton Industries. All of the ACF’s products was provided to the Big-Three domestic automobile producers. At that time, the competitors were only domestic suppliers and other Bridgeton plants. However, later on, competition became stronger due to the foreign suppliers increased. In addition, the expensive gasoline and
Words: 586 - Pages: 3
Bridgeton Assignment 1. The overhead allocation rate used in the 1987 model year strategy study at the Automotive Component & Fabrication Plant (ACF) was 435% of direct labor dollar cost. Calculate the overhead allocation rate using the 1987 model year budget. Why do you get different numbers? 2. Calculate the overhead allocation rate for each of the model years 1988 through 1990. Are the changes since 1987 in overhead allocation rates significant? Why have these changes occurred? 3
Words: 284 - Pages: 2
base quantity 2. What are the causes of excess capacity at ANAGENE? How is this situation different from the causes of excess capacity at BRIDGETON INDUSTRIES? • Initial output was for R&D purposes; production volumes varied more than 100% from month to month • The anticipated cartridge production volumes keep fluctuating • Addressing new markets • At Bridgeton, the death spiral resulted from the continuous outsourcing of their products; this is evident in the changes of their overhead rates from
Words: 348 - Pages: 2
