Income Information Current Hi-Tech Broker Production Mid-Grade 2,585.00 3,878.00 3,878.00 Production can be increased by 50% and the broker also anticipates that same level High-End 517.00 776.00 776.00 Production can be increased by 50% Direct Materials ($)/Unit Mid-Grade 140.00 140.00 There are no material costs for brokered units High-End 250.00 250.00 Direct Labor ($/HR)/Unit 15.00 40.00 The labor rate is increased
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Recommendation for Guillermo Furniture Managerial Accounting and Legal Aspects of Business ACC 543 Capital Budget Recommendation for Guillermo Furniture After careful evaluation of preexisting financial documents, an assessment has been made to determine what business decision will provide the greatest return for Mr. Navallez, owner of Guillermo Furniture. Presently, Mr. Navallez needs to re-strategize his business endeavors, because there is now new competition in the furniture manufacturing
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Introduction Guillermo Navallez is from the beautiful state of Sonora, Mexico. In Sonora is one of the largest furniture manufactures. Guillermo has been working in the furniture business for many years. Since Sonora has a big selection of timber it has helped to create different styles of furniture. Labor is inexpensive and Guillermo has priced his furniture for the quality of the design. As time pass there changes in the business and Guillermo has seen this effect his business. By all the changes
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Guillermo Furniture is a furniture manufacture located in Sonora, Mexico. Guillermo Furniture was thriving until the late 1990s, when the economy just took off. With new housing, competitors moved in with more technologically advanced equipment than Guillermo. Guillermo’s furniture created by hand; was one of a kind. The competitors that moved in used computer controlled laser lathe to produce exact cuts in each piece of wood. The competitors could create furniture faster and, much
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The Guillermo Furniture Store Decisions Team A Accounting/ACC 561 November 10, 2010 Professor Rios, Angel J. Guillermo Furniture Store Decisions Navallez Guillermo’s quest to remain competitive in the furniture industry comes down to analyzing cost accounting measures. By carefully analyzing balance sheets and income statements, accounting officials can provide management a synopsis of where company strengths and weaknesses are, and then corrective measures can be adjusted to improve
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Guillermo Furniture is a mid-grade to high-end sofa furniture manufacturer that operates in Sonora, Mexico. Guillermo Navallez is the sole owner of Guillermo Furniture and is looking at options that will provide the greatest return on his investment (University of Phoenix, n.d). Guillermo Furniture is looking at two options which include, (1) purchasing high-end machinery to reduce labor and production costs and (2) the possibility of becoming a distributor for a manufacturer that is trying to move
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Guillermo Furniture Store Scenario Accounting is a daily function in many areas in our lives. Whether it is budgeting in our homes, or business, accounting services are useful and necessary. Guillermo Navallez has a very successful furniture business near his home in Sonora, Mexico. In the 1990’s Guillermo’s business was facing new competition. Rising costs and falling prices were causing Guillermo’s profit margin to shrink (University of Phoenix Guillermo Furniture Store Scenario, 2011). In
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Analysis Guillermo’s Furniture store was hit by companies that are now his competitors. Guillermo’s furniture store has been losing profits and needs to consider other options. The paper will cover Guillermo’s different choices and consider doing some of his business overseas. Guillermo furniture store has been running for over ten years and has been profitable. Then the competitors moved in and brought down the profits for Guillermo. Budgeting Guillermo watched the other furniture stores operate in
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Guillermo Furniture Store and Pro Forma Analysis Guillermo Navellez, once the owner of the largest flourishing furniture store in Sonora, Mexico faces globalization and the emergence of foreign competition. Inexpensive labor and the abundance of timber in Sonora are major factors, which contributed to the manufacturing of the store’s furniture. Guillermo faces new competition that possesses advanced technology with the ability to manufacture faster and at lower costs. With the emergence of this
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behavioral decisions. Decisions are prompted from the Principle of Self-Interested Behavior, a course of action most financially advantageous for themselves (Emery, et.al, 2007). According to the scenario, Guillermo’s Furniture Store, Guillermo Navellez, owner of local furniture manufacturing plant, has identified several key alternatives which will affect his decision regarding production, labor costs, organizational management, and organizational stability. After reading this paper, the reader
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