Destin Brass Production Company Contents Executive Summary ...................................................................................................................... 2 Problem Statement ....................................................................................................................... 2 Key Decision Criteria .................................................................................................................... 3 Alternatives Analysis .......
Words: 2693 - Pages: 11
ACCT 6218 Sec 01 12/10/11 I would recommend that Destin Brass stay in the flow control market by increasing current prices. However, I would also recommend amending the goal of having a 35% gross margin across all three products. Currently Destin Brass is selling their Flow Controllers for a few dollars under cost. After getting buy-in about lowering target gross margin for Flow Controllers, I would recommend a selling price of $120. This is less than a $25 price increase and in my marketing
Words: 552 - Pages: 3
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
Words: 746 - Pages: 3
Destin Brass Products Destin Brass produces three products used for water purification systems: valves, pumps and flow controllers. They are seeing high competition in the pumps market while competitors are reducing the prices on pumps. Because they do not have any design advantages to their product, they feel they need to follow the market and lower their prices as well. A meeting was held to discuss the declining profits and a proposal to change their overhead allocation method was proposed
Words: 853 - Pages: 4
EXHIBIT 1 | | | | | | Total | Valves | Pumps | Flow Controllers | Manufacturing Costs | | | | | Material Cost per Unit | | $ 16 | $ 20 | $ 22 | Units/Month | | 7,500 | 12,500 | 4,000 | Material Cost per Month | | 120,000 | 250,000 | 88,000 | | | | | | Labor Unit Cost | | | | | Production Runs per Month | | 1 | 5 | 10 | Set-up Labor Hrs/Prod. Runs | | 8 | 8 | 12 | Run Labor Hrs/Unit | | 0.25 | 0.5
Words: 456 - Pages: 2
1. Cost Breakdown Valves Pumps Flow Controllers Production 7500 12500 4000 Runs 1 5 10 Shipments 1 7 22 Material Costs Per Valve 16 20 22 Total Material Costs 120000 250000 88000 Labor Costs Setup/Run 8 8 12 Setup Costs @ $16/hr 128 640 1920 Runtime/Unit 0.25 0.5 0.4 Runtime Costs @ $16/hr 30000 100000 25600 Machine Costs Usage/Unit 0.5 0.5 0.2 Usage/Month 3750 6250 800 Usage Cost @ 25$/hr 93750 156250 20000 Overhead Receiving
Words: 486 - Pages: 2
Anexo 1 - Analisis rentabilidad en productos (dólares) Valvulas Bombas Reguladores de flujo Costes unitario estandar 37,56 63,12 56,5 Precios de venta fijados 57,78 97,1 86,96 Margen bruto previsto (%) 35% 35% 35% ULTIMO MES Precio de venta real 57,78 81,26 97,07 Margen bruto real (%) 35% 22% 42% Valvulas Bombas Reguladores de flujo % ingresos compañía
Words: 955 - Pages: 4
there is a mix of products. For example, in the Owen Hospital situation in the lecture, all dialyses were the same, so all we needed to do was divide the mission center’s total costs by the number of dialyses to get a cost per dialysis. However, in Destin Brass, there are three distinct products that pass through the mission center, such that the cost attachment effort is more complicated. Second, it is quite easy to attach direct material and direct labor to any given product. These can be computed
Words: 1345 - Pages: 6
Hechos * Una gama de tres productos que se fabrican con el mismo proceso, solo se diferencian en la cantidad de materia prima y las horas mano de obra: * Válvulas: 24% de los ingresos, se requerían en un ciclo/mes y cuatros componentes * Bombas: 55% de los ingresos, se requerían cinco ciclos/mes y cinco componentes. * Reguladores de Caudal: 21% de los ingresos, se producían en cinco ciclos/mes, para producir 4000 unidades y requerían más componentes y mano de obra que las
Words: 490 - Pages: 2
