MEMORANDUM TO: Destin Brass Products Co. FROM: Brett Davis, Paul Gorski, and Sarah Wisenbarger DATE: September 17, 2015 SUBJECT: Analysis of Destin Brass Products Co. ------------------------------------------------- The purpose of this memorandum is to analyze the product costing of pumps, valves, and flow controllers at Destin Brass Products Co. Destin Brass supplies three products for high-quality brass boat fittings. Currently the most revenue is coming from the production
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ACCT 7107 Minor case 1 Destin Brass Products Co. 1. Background. Destin Brass Products is a company that manufactures pumps, valves and flow controllers. Roland Guidry is the president, Peggy Alford is controller, John Scott, the manufacturing manager and Steve Abbott, the sales and marketing manager, they held significant shares of this company. Pumps are the major production in the company but now they force to a situation that in this large market, other competitors reduce their prices
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Destin Brass Products Co. manufactures three items: valves, pumps and flow controllers (FC's). All three items are used in water purification systems. Destin faces stiff competition in the pump market with no design advantage that would make their pumps more desirable. A meeting was held due to declining profits caused by a lower price Destin was able to charge for pumps and having budgeted pumps sales to account for 55% of company revenues. A proposal was put forth to modify how the company allocates
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Destin Brass Products Co. Case study Cost Issues. Vales: Several competitors could math our quality but none had tried to gain market share by cutting price and gross margins had been maintained. Pumps: Our competitors’ sales prices are below our pump-cost calculation even when our manufactural process is better. Could not figure out how competitors making profit unless being subsidized by other products. Flow Controllers: We increased price by 12.5% with no apparent effect on demand. Peggy
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Destin Brass Products Company (“Destin”) was established in 1984 when Steve Abbott had sensed an opportunity after talking with a president of a large manufacturer of water purification equipment who was dissatisfied with the quality of the brass valves available. Soon after the formation of the company, Scott and his team were able to manufacture valves that met or exceeded the needed specification enabling them to acquire a contract with the purification equipment manufacturer and enabling them
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Destin Brass Products Co. Case Analysis Required Questions Solution Click Link Below To Buy: http://hwcampus.com/shop/destin-brass-products-co-case-analysis-required-questions-solution/ Purchase and read the case study titled Destin Brass Products Co. by William J. Bruns Jr. It should cost you $3.95. There is also a supplemental spreadsheet that you should download to work from. Disregard the questions at the end of the case. You should answer the following questions: Requirement
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Destin Brass Products Co. Case Analysis Required Questions Solution Click Link Below To Buy: http://hwcampus.com/shop/destin-brass-products-co-case-analysis-required-questions-solution/ Purchase and read the case study titled Destin Brass Products Co. by William J. Bruns Jr. It should cost you $3.95. There is also a supplemental spreadsheet that you should download to work from. Disregard the questions at the end of the case. You should answer the following questions: Requirement
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Rev. April 27, 1993 Destin Brass Products Co. ost Teaching Note Substantive Issues Raised The managers of Destin Brass Products a y or P re struggling to understand the relationship between their costs and prices for each of the three products produced and sold by Destin. One of the products, pumps, is coming under increasingly competitive price pressure. As a result, Destin has been unable to maintain its desired profit margin. At the same time, Destin has been able to raise
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Destin Brass Production Company Contents Executive Summary ...................................................................................................................... 2 Problem Statement ....................................................................................................................... 2 Key Decision Criteria .................................................................................................................... 3 Alternatives Analysis .......
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Introduction Destin Brass Products Co. is a Florida based manufacturing company specializing in brass components that are used in fluid distribution systems within the water purification industry. They operate one manufacturing facility and focus on the machine and assembly steps of three products: valves, pumps and flow controllers. Recently, Destin has been facing increasing price competition on their line of pumps which is causing them to continually reduce prices resulting in lower margins
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