Case Analysis – Specialty Toys 1. Senior sales forecaster predicted and expected demand of 20,000 units with .95 probability that demand would be between 10,000 and 30,000 units. P (10,000 < x< 30,000) = .95 (30,000-20,000)/1.96 = 5,102 X = the demand of Weather Teddy Mean µ = 20,000 Standard Deviation α = 5,102 The normal distribution of the demand for the Weather Teddy is represented in the graph below. This is based off of the forecast of previous selling history of other
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Specialty Toys Case Study 1. The mean is 20,000 units and there is a 95% probability that demand will be between 10, 000 and 30,000 units. This means there is a .025% chance that the demand will be outside of 10,000 and 30,000. Using the chart, we find that z=-1.96. Using the following calculation, we find: z= x- μ σ -1.96 = 10,000 – 20,000 σ σ=5102 Standard deviation σ = 5,102
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MBA: 633 sTATISTICS FOR BUSINESS DECISION MAKING | Specialty Toys, Inc. | Case Problem: Group Assignment No. 1 | | March 4, 2010 | | [Managerial Report prepared to address issues and recommend and order quantity for the Weather Teddy product for Specialty Toys, Inc.] | Executive Summary Specialty Toys, Inc. is a manufacturer of new and innovative children’s toys which includes the Weather Teddy. The Weather Teddy has a built-in barometer that provides one of five standard responses
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of stockout will be 0.2177 At 28,000 the probability of stockout will be 0.0582 3. Compute the projected profit for the order quantities suggested by the management team under three scenarios: worst case in which sales = 10,000 units, most likely case in which sales = 20,000 units and best case in which sales = 30,000 units: Order Quantity: 15,000 were cost price is $16, selling price $24 & after holiday selling price $5 |Unit Sales |Profit | |10,000 |25,000 | |20,000 |120,000 | |30
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Case Study 1: Specialty Toys | Group 10 | Amy GarlitzAlison MalzahnRudy RodelasAngad SinghAbigail Webber | Question 1 The data of the sales of the Weather Teddy presented in the Specialty Toys case has a normal probability distribution. The company has a 95% probability of demand for the Weather Teddy being between 10,000 and 30,000 units. Therefore, 95% of the data is within two standard deviations of the mean. The standard deviation is 5,000, or the data deviates from the mean by 5
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Short Cycle | Short Cycle process | Who | Audrey Hausner, G.G.’s controller, David Morehouse, G.G.’s manufacturing manager and Robert Parker, President G.G. Toys. | What | Increase the margins of the Geoffrey Doll. | Why | The decline in margins on the Geoffrey Doll has become intolerable. | When | ASAP. | | | Case Difficulty | Analytische | Conceptuele | Presentatie | Problem ? Yes | Theory? | Structured? Yes, 7 pages | Solution? No | | | | Long Cycle Define
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G.G. Toys 1. Do you recommend that G.G. Toys change its existing cost system in the Chicago Plant? In the Springfield plant? Why or why not? In the Chicago plant, G.G. Toys should change its existing cost accounting system from the legacy or traditional costing methodology to activity-based costing (ABC). In allocating overhead as a percentage of direct labor cost, the margins of 9% and 34% in the Geoffrey doll and the specialty branded doll #106 respectively, do not reflect the actual cost of overhead
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CASE #4: G.G. Toys 1. Do you recommend that G.G. Toys change its existing cost system in the Chicago plant? In the Springfield plant? Why or why not? G.G. Toys should change its existing cost accounting system from traditional costing to activity-based costing (ABC) in the Chicago plant as it is allocating its entire manufacturing overhead on the basis of just one cost driver: production run direct labor cost. Since overhead at the Chicago plant is high, accurate cost accounting system is required
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G. G Toys Case Analysis By Managerial Accounting June 16, 2013 Costing systems are components of a broader accounting system used by a given company or organization. Their main function is to keep a focused eye on expenditures made by the company in question. Synthesis of Existing Cost Models to Meet System of System Needs, p.86. G.G. Toy's production process for dolls started with the basic raw materials needed for the bodies of the dolls, wool and things for the hair and clothing
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1. Estimated cost of a Geoffrey Doll, the specialty-branded doll #106, and a cradle Based on the internal cost study, the costs of Geoffrey Doll and the specialty branded doll #106 changed drastically. There was no change in the costs of the cradle as the Springfield plant is very labor intensive. Below are the calculations for the total cost of each type of doll & the cradle: Cost Breakdown (in $) Geoffrey Doll Specialty Branded Doll #106 Cradles Direct Labor Cost 3.00 3.75 7.50 Direct
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