Income Statements for Danvers Assembly Business Unit
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages Description/Paper Instructions
Income Statements for Danvers Assembly Business Unit
Evaluate the effect of the move to the company’s Plant margin, change in dollar, and change in PM%. Assume a 5% increase and decrease in volume would not affect fixed cost.
Income Statements for Danvers Assembly Business Unit
Use Exhibit 8 and compute for Andover’s Plant Margin by using Exhibit 9 and 10 information then make a comparison. Based on the sensitivity to changes in sales volume, which location is more desirable?
Income Statements for Danvers Assembly Business Unit
Exhibit 8: Income Statements for Danvers Assembly Business Unit
Income Statements for Danvers Assembly Business Unit
Revenue $ 37,540,000 100% Less Variable Costs: Direct Materials $ 27,302,000 73% Variable Manufacturing OH 357,000 1% Variable Support & Logistics OH 4,925 0% Contribution Margin $ 9,876,075 26% Less Fixed Costs: Assembly Labor 1,872,000 Support & Logistics Labor 1,144,000 Plant Administration and Management 480,000 Occupancy 928,000 Depreciation – Assembly Equipment 456,000 Depreciation – Furnishing and Fixtures 259,800 Depreciation – Administration Assets 4,800 $ 5,144,600 14% Plant Margin $ 4,731,475 13% Capital Charge (cost of capital = 10%) $ 1,805,600 Plant Economic Income $ 2,925,875 8% Income Statements for Danvers Assembly Business UnitExhibit 9: Estimates of Headcount Changes from PRIME Reconfiguration
Current/Danvers Projected/Andover Assembly Labor 30 24 Support & Logistics Labor
22 12 Plant Administration and Management 4 4 56 40 Exhibit 10: Excerpts from the Report on Potential Costs and Savings from Move to Andover
Some of the costs and savings related to the move are obvious. Certainly, a move to Andover would eliminate the need to pay the $400,000 per year lease in Danvers. Additionally, the costs of maintaining, heating, cooling, and securing the Danvers facility would be eliminated by the move. If the assembly operation could be successfully fit into the available space in Andover, it would simply be allocated a share of the current Andover facility occupancy costs.
Based on space occupied, we estimate the assembly operation’s share of Andover’s occupancy cost to be $499,000 per year.
Income Statements for Danvers Assembly Business Unit
There will have to be some investment in preparing the Andover facilities to house an assembly operation, including some equipment modification.
The major expenditure will be for new ambient testing systems. Each system, consisting of a server and 50 test stations, will cost $600,000 to build and install. All of the old testing machines will be fully depreciated by the end of 2008 and sold for their salvage value for a net effect of no gain or loss.
We estimate the economic life of these systems to be 10 years. We can move and reuse about half of the furnishings and fixtures currently in Danvers in the new facility in Andover. The remaining fixtures are leasehold improvements made to the building and cannot be moved.
Income Statements for Danvers Assembly Business Unit
Those assets would have to be written off, except, luckily, they will be fully depreciated at the end of 2008. In Andover, we will have to spend $100,000 on new furnishings and fixtures to prepare the building for the assembly operation. Following company policy, those new leasehold improvements will be depreciated over 10 years.
We can move all of the administration and management assets, which are primarily desks, computers, and other office furnishings. These were all replaced recently, so annual expenses related to their depreciation will remain unchanged.
Income Statements for Danvers Assembly Business Unit
We have planned the logistics on the move itself to be possible to execute over a three-day holiday weekend. There should be no loss of productive time. This will require several weekends of preparation and planning, however. There will be an out-of-pocket cost of $157,000 attached to the move.
The move will create savings in Andover. One immediate effect will be the removal of the need to shuttle engineers, parts, and equipment back and forth between Andover and Danvers. We estimate this savings to be $300,000 per year in combined out-of-pocket costs and recovery of lost engineer’s time.
Income Statements for Danvers Assembly Business Unit
The out-of-pocket costs are the shuttle driver, whose fully-loaded annual cost is $35,000, and the annual lease, maintenance, and operating costs of the van. These costs are $10,000 per year. Another savings in Andover will come from the reassignment of occupancy costs currently covered by the existing business to the assembly operation. As detailed elsewhere in this report, we estimate that $499,000 per year will be reallocated to the assembly operation.
Income Statements for Danvers Assembly Business Unit
RUBRIC
QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points: Student failed to submit the final paper. 20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. 40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. 50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. 5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. 10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. 15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6th Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources. 20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. Grammar (worth maximum of 20% of total points) Zero points: Student failed to submit the final paper. 5 points out of 20: The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors 10 points out 20: The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors 15 points out of 20: The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. 20 points: The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. Structure of the Paper (worth 10% of total points) Zero points: Student failed to submit the final paper. 3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. 5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper 7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper. GET THIS PROJECT NOW BY CLICKING ON THIS LINK TO PLACE THE ORDER
CLICK ON THE LINK HERE: https://www.perfectacademic.com/orders/ordernow
Also, you can place the order at www.collegepaper.us/orders/ordernow / www.phdwriters.us/orders/ordernow
Do You Have Any Other Essay/Assignment/Class Project/Homework Related to this? Click Here Now [CLICK ME]and Have It Done by Our PhD Qualified Writers!! Income Statements for Danvers Assembly Business Unit