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Friday, March 19, 2021

Harley Davidson

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HARLEY-DAVIDSON, INC.


The Harley-Davidson Corporation has been dominating the motorcycle industry for many decades. Today, it continues to have a strong presence in the American market. The mission statement of the company is "To fulfill dreams through the experience of motorcycling, by providing to motorcyclists and to the general public and expanding line of motorcycles and branded products and services in selected market segments."


Harley-Davidson, Inc. is the parent company for the group of companies doing business as Harley-Davidson Motor Company, Buell Motorcycle Company and Harley-Davidson Financial Services. Harley-Davidson Motor Company manufactures five families of motorcycles Sportster ®, Dyna Glide, Softail ®, Touring and VRSC. Buell Motorcycles Company produces sport motorcycles, including four big-twin XB models, and the single-cylinder Buell Blast ®. Buell also offers a line of motorcycles parts, accessories, apparel and general merchandise. Harley-Davidson Financial Services provides wholesale and retail financing and insurance pogroms primarily to Harley-Davidson/Buell dealers and customers.


S.W.O.T. ANALYSIS


STRENGTHS


This year, Harley-Davidson celebrated its 100-year anniversary. Over the past century, the company has created a strong brand image and a loyal customer base. It maintains a close relationship with its customers through a variety of program, such as Hog Owners Group (H.O.G.), product offerings and events such as Daytona, motor shows, and rallies.


In addition, Harley-Davidson has a strong financial position, excellent supply chain management, and a superior product line, which are enabled through creative engineering technology and design. Due to the decline in the market share to Japanese companies in the seventies, Harley-Davidson phased out its weak models, becoming more selective in targeting a specific customer segment and limiting sales and promotion. This strategy created a niche market for their bikes in which the company enjoys a strong position today.


WEAKNESSES


The Harley-Davidson company has several weaknesses. First, the company is in its maturity stage and, unless it manages to protect its position, it will be faced with the decline period again. Secondly, the company's products are expensive, which limits them to a specific niche in the market and makes it difficult to grow their customer base. They also have a wait-list for certain products, which can create a substitute effect. Lastly, they are lacking a strong presence in Europe.


OPPORTUNITIES


There are various opportunities in the market for Harley-Davidson today, especially with the introduction of the new V-Rod motorcycle. The company has the innovator status advantage in the Performance Cruiser class market segment. They are expanding their partnerships with various European manufacturers, which should increase the presence of Harley-Davidson products in Europe. The corporation is well positioned to attract younger customers, and the company has plenty of room for growth due to the high demands for its products.


THREATS


Harley-Davidson is facing rigorous competition from Japanese manufacturers, specifically Honda and Yamaha. Yamaha targets the low-end market by providing a variety of products at affordable costs. Yamaha's core competencies are small engines, electronic control, and fiberglass reinforced plastic. Yamaha is currently focusing on increasing its global competitive position.


Honda is one of Harley-Davidson's strongest competitors and is responsible for one-third of all motorcycle sales in the U.S. It has a strong financial base and reliable products. It continues to improve the performance of its motorcycles by focusing on fuel efficiency and lower emissions. In addition, Honda is beginning to increase its performance in the market by introducing information technology tools through its dealerships. These tools help increase dealer performance and create a more positive experience for the customer.


FINANCIAL POSITION


Harley-Davidson currently holds a strong position in the market. However, it is in tight competition with Honda and Yamaha, as shown in the table below comparing a mid-priced motorcycle from each line


00 Potential


Competitor MSRP Market Share Revenue


Honda VTX $1,000 .6% $1M


H-D VROS $17,000 % $186M


Yamaha Road Star $1,000 0.6 $.76M


For the quarter ended June , 00, consolidated net revenue totaled $1. billion, a $17.8 million (1.8% increase) over the same period last year. Net income for the second quarter of 00 was $0. million, compared to $144. million in the second quarter of 00, and increase of 40.1%.


Below is a comparison of net revenue of Harley-Davidson and its top competitors


Revenue Growth


Yamaha 845.8M 18.4%


Harley-Davidson, Inc. 40.1M 1.6%


Honda 540M .%


RECOMMENDATIONS


Tom Condor, an industry analyst with A.G. Edwards & Sons, Inc. brokerage firm, says of Harley buyers, "When they're buying a Harley, they're buying an image and a lifestyle first and a motorcycle second." But, Harley-Davidson has to do more to ensure another 100 years of success.


Aging baby boomers form Harley-Davidson's customer base. N The median age of Harley buyers is 46, compared with an industry average of 8. This could have a damaging affect on consumer's perception of a Harley being the old guy's bike.


Harley-Davidson produces only heavyweight motorcycles (with engine displacements of 750cc or greater) that are categorized into touring and cruiser motorcycles. Harley-Davidson's subsidiary, Buell Motorsports, makes sports bikes, but it only accounted for 4 percent of Harley's bike shipments last year. Harley-Davidson needs to continue to give attention to their classical product line that has made them successful, but they need to focus more activities toward reaching out to new, younger customers.


Only Nine percent of Harley owners are women. This is a market segment that is growing at a fast rate. To be successful here, Harley needs to provide smaller, easier to handle, comfortable, and good quality bikes to build up brand loyalty.


Although motorcycles are sold internationally, there are three main geographic markets that comprise the bulk of motorcycle sales. These are North America (US and Canada account for 60% of the market), Asia, and Europe. Only 16.5 percent of Harley's revenue comes from outside the United States. The European market has great potential for Harley-Davidson since Europeans have higher disposable income and enjoy a higher standard of living. To succeed in this market, Harley-Davidson would have to modify their products to meet local needs, expand its distribution networks, and create strong customer service. Although the Japanese producers control the largest share of the world market, they are notorious for low quality service. Harley-Davidson's emphasis is good quality products and after sales service. These qualities could be used to build brand loyalty.


Today, as the feelings of American patriotism are so strong, Harley-Davidson needs to continue to strengthen its positioning strategy by building on the "Own an American Icon" slogan.


In summary, Harley-Davidson should capitalize on its current reputation and success by rapidly increasing demand, and by expanding its product line to reach new consumer markets, especially overseas. It needs to target a younger, technologically conscious and affluent market segment in order to increase its share of the market. The company is well-positioned to attract younger customers and they have plenty of room for growth due to the high demands for its products. They also need to set an appropriate pricing strategy, in order to appeal to a wider market segment.


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Tuesday, March 16, 2021

The Leopard

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The Leopard is a novel which explores the unknown realms of death, with these three passages being prime examples of this. However, Lampedusa deals with this theme of death in an intricate manner such that, whilst these passages can be broadly paralleled with each other, the deaths that occur are not mere deaths of the human body, instead, Lampedusa chooses, through powerful language and vivid imagery, to outline how one man, Don Fabrizio can have such a profound effect on the lives of others and how decisions made in the present severely affect the events of the future."Just whatever you like, ladies; keep them or throw them on the rubbish heap; they have no value whatsoever." This statement from the Pope's secretary, Don Pacchiotti who was Piedmontese, "those who besieged the last Bourbon King", was the final irony of the novel. No longer would the Salina name be dragged through mud, the last hint of prestige associated with this once prestigious household was now officially gone. "Carolina had been the real creator of this collection", however, Concetta, as uncontested mistress of the house, had to bear the burden of humiliation for all three of the unmarried sisters. The last ounce of life was drained from Concetta's body; this lack of emotion was the result of years of solitude stemming from Concetta's lost love Tancredi. Even the portrait of her father, who she deeply loathed, was now just a mere physical object, the four green cases in her room, "an inferno of mummified memories"Lampedusa chose to end the novel with this chapter, "Relics", in which the events occur twenty-seven years after the Prince's death, to outline how Concetta was in fact the last of the Salina, something completely overlooked by Fabrizio, although, he was aware that Concetta's attitude closely resembled his own during his lifetime. This chapter, and this passage from the novel also outlines how The Leopard still has a profound effect on his family members, even posthumously. Lampedusa also makes us aware of an almost religious presence, the Salina family helpless in the path of their own fate, doomed from time immemorial.


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Don Fabrizio faces the death of pure nobility with the union of Angelica and Tancredi. "Angelica excited by… the obvious admiration she was arousing in every man around the table." Fabrizio also perceptively realises the weakness of the Sicilian people, and during his conversation with Chevalley he describes the attitudes of his people "a hankering for oblivion…that attracts us only because is it dead." The Prince clearly longs for death, for "a meeting less ephemeral… for perennial certitude…"The union of Tancredi and Angelica is the event which desensitises Concetta. It was also Concetta's stubborn Salina pride which prevented her from ever marrying; this also evoked a hatred for her father and a bitter-sweet relationship with Tancredi's wife, Angelica. The inspection of the Salina chapel is Concetta's final emotional trigger. She was alive in the physical sense of being, yet she felt nothing, living only in a subliminal state, consumed by the wretched fate of the Salina; defunct in spirit. This segment also highlights the differences between Concetta and her two sisters. Carolina and Caterina spending time collecting worthless relics, Concetta providing the finances and dealing with anything of importance. The obvious similarity between the sisters is their marital status, and whilst Fabrizio himself is to blame for this, the specific details are very different. Worthy of noting from passage three is the comments of the "lovely frames" which encase the worthless relics. These can be paralleled with the lives of Don Fabrizio and Concetta, decorated with much glamour, but most of the actual artefacts themselves having no worth. The artefacts are life, and remind us of how Don Fabrizio lead a life of decadence, melancholy and one of little meaning, seeking refuge in astronomy. "I'm seventy-three, and all in all, I may have lived, really lived, a total of two…"Lamepdusa's mastery of language provides the reader with a fulfilling experience, one filled with many complex themes and ideas, many more than solely the theme of death. These passages are about much more than death, they are as much about life as they are death, making the reader aware, mainly from The Prince's monologue, just how his actions shaped the lives of so many others, and how the Salina family were not in control of their fate. Lampedusa makes us aware of just how much Concetta's life was marred by her authoritarian father, and how memories of the past can be more damaging than an actual moment in the present. Upon conclusion of the novel, Concetta had Bendico, the Prince's stuffed Great Dane, discarded out the window, but even then, the deceased dog seems to compose itself into the form of a prancing leopard, and then "all came to rest in a little heap of livid dust."


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T.S. Eloit

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T.S. Eliot (1888 - 165)T(homas) S(tearns) Eliot was born in St. Louis in 1888 to a family with prominent New England roots. Eliot largely abandoned his Midwestern roots and chose to ally himself with both New and old England throughout his life. He attended Harvard as an undergraduate in 106, was accepted into the literary circles, and had a predilection for 16th- and 17th-century poetry, the Italian Renaissance (particularly Dante), Eastern religion, and philosophy. Perhaps the greatest influence on him, however, were the 1th-century French Symbolists such as Charles Baudelaire, Arthur Rimbaud, Stephene Mallarme, and Eliots favorite, Jules Laforgue. Eliot took from them their sensual yet precise attention to symbolic images, a feature that would be the hallmark of his brand of Modernism. Eliot also earned a masters degree from Harvard in 110 before studying in Paris and Germany. He settled in England in 114 at the outbreak of World War I, studying at Oxford, teaching, and working at a bank. In 115 he married British writer Vivienne Haigh-Wood (they would divorce in 1), a woman prone to poor physical and mental health, and in November of 11, Eliot had a nervous breakdown. By this time Eliot had already achieved great success in 117 with his first book of poems, Prufrock and Other Observations (which included The Love Song of J. Alfred Prufrock, a work begun in his days at Harvard). Eliots reputation was bolstered by the admiration and aid of esteemed contemporary poet Ezra Pound, the other tower of Modernist poetry. During Eliots recuperation from his breakdown in a Swiss sanitarium, he wrote The Waste Land. A couple of months later he gave Pound the manuscript in Paris. Thanks to Pounds heavy editing, as well as suggestions (specifically about scenes relevant to their stormy, hostile marriage) from Haigh-Wood, The Waste Land, published in 1, defined Modernist poetry and became possibly the most influential poem of the century. Devoid of a single speakers voice, the poem ceaselessly shifts its tone and form, instead grafting together numerous allusive voices from Eliots substantial poetic repertoire; Dante shares the stage with nonsense sounds (a technique that also showcases Eliots dry wit). Believing this style best represented the fragmentation of the modern world, Eliot focused on the sterility of modern culture and its lack of tradition and ritual. Despite this pessimistic viewpoint, many find its mythical, religious ending hopeful about humanitys chance for renewal.


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Eliot was now the voice of Modernism, and in London he expanded the breadth of his writing. In addition to writing poetry and editing it for various publications (he also founded the quarterly Criterion in 1, editing it until its end in 1), he wrote philosophical reviews and a number of critical essays. Many of these, such as Tradition and the Individual Talent, have become classics, smartly and affectionately dissecting other poets while subliminally informing us about Eliots own work. Eliot defined his preference for poetry that does away with the poets own personality, and poetry that uses the objective correlative of symbolic, meaningful, and often chaotic concrete imagery. Eliot joined the Church of England in 17, and his work afterward reflects his Anglican attitudes. The six-part poem Ash Wednesday (10) and other religious works in the early part of the 10s, while stellar in their own right, retrospectively feel like a warm-up for his epic Four Quartets (completed and published together in 14). Eliot used his wit, philosophical preoccupation with time, and vocal range to examine further religious issues. Eliot continued his Renaissance man ways by writing his first play, Murder in the Cathedral, in 15. A verse drama about the murder of Archbishop Thomas à Becket, the plays religious themes were forerunners of Eliots four other major plays, The Family Reunion (1), The Cocktail Party (14), The Confidential Clerk (15), and The Elder Statesman (15). Religious verse dramas cloaked in secular conversational comedy, Eliot belied whatever pretensions his detractors may have found in his Anglophilia. He leapt ahead with this anti-pretension with Old Possums Book of Practical Cats (1), a book of verse for children that was eventually adapted into the Broadway musical Cats. As one might expect from his work, Eliot was unhappy for most of his life, but his second marriage in 157 proved fruitful. When he died in 165, he was the recipient of a Nobel Prize (148), author of the centurys most influential poem, and arguably the centurys most important poet. Perhaps due to the large shadow he casts, relatively few poets have tried to ape his style; others simply find him cold. Still, no one can escape the authority of Eliots Modernism, one as relevant today as it was in 1. While Eliot may not have as much influence on poets today as some of his contemporaries, he has had a far greater impact on poetry. www.historychannel.comPlease note that this sample paper on T.S. Eloit is for your review only. In order to eliminate any of the plagiarism issues, it is highly recommended that you do not use it for you own writing purposes. In case you experience difficulties with writing a well structured and accurately composed paper on T.S. Eloit, we are here to assist you. Your persuasive essay on T.S. Eloit will be written from scratch, so you do not have to worry about its originality.


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Monday, March 15, 2021

Daddys getting married

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Daddy's Getting MarriedPage 1My daddy and I are best friends. I love my daddy and we do everything together.We walk our dog Lulu, stay up late on weekends and eat pizza, ice cream and read lots of stories. I love my daddy, we do everything together.


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Page Daddy met a girl, her name is Libby. She is tall with blonde hair and green eyes. She is very pretty but not as pretty as my mum.She seemed nice at first but then she started staying over on weekends. I hated it! Daddy and I never get to stay up late anymore. I don't like her! I love my daddy and I want him back.Page I told daddy that I didn't like her and that we never get to do anything together any more. He said he was sorry and that he loved Libby and that we would still do things together but with Libby as well.I didn't believe him. When Libby arrived that night they kissed and sat on the couch holding hands and watching TV. I felt so alone. They didn't want me there. I went to bed crying and cried myself to sleep.Page 4The next couple of weeks she started staying over and gradually moving her things into our house. Daddy took down all the pictures of my mother, I didn't like it! I cried until he put them back.The house was a mess, her things were everywhere. They started to talk about a wedding and getting married. They want me to be the flower girl and Libby started telling me how pretty I would look in a pink dress with flowers in my hair. I hate pink. Again I went to bed crying.Page 5 We went to the shops and Libby picked out the pink dress. "I hate pink!" I screamed. "And those shoes are so ugly!" I canted and stamped my feet. "If I'm going to have a dress it has to be blue." I told her. "But it doesn't really matter because I'm not going anyway, I hate you!" I yelled at her.Libby started crying and sobbing. This made me feel bad. I knew then that daddy would be angry with me. Libby then looked up at me and started to tell me her story. She told me how she always dreamed of growing up and meeting a wonderful man like my dad and getting married and having a little girl of her own to love and cherish.Page 6 She then told me that when she first met my dad her head started to spin and she new straight away this was the man of her dreams. Then to find out he had a little star of his own in the shape of a little girl. And that little girl is I.Libby bought the dress and shoes I picked, and she told me I would look beautiful in them. We then went home but I could tell Libby was not happy and didn't talk and laugh like she usually did. I wondered what she would tell daddy.Page 7If he would ever want to speak to me again. I knew he would be really angry now and I started to get scared. When we got home I went straight to my room and waited and waited for daddy to come and talk to me. He never came.Libby called me out for dinner and as we sat at the table eating daddy asked me "how was your day?" I realised then that Libby hadn't told dad what had happened. That she was protecting me and suddenly I felt very, very guilty.Page 8The next day at school everything went wrong. I felt really awful. Emma pulled my plaits and when I told her to stop the teacher went mad on me for talking. My best friend Michael called me names at playtime. My spelling and homework were wrong.I felt so unhappy and alone. I started to sob and the teacher sent me to the sick bay. The nurse asked me what was wrong. I couldn't talk, I just cried more and more. When I woke up Libby was there. She held me in her arms and I just cried and cried on her shoulder.Page She carried me to the car, to home and to bed. When I woke again later Libby was there. She told me that she loved me very much and that she wants to make both dad and me very happy. I suddenly started feeling safe and a tingly feeling went through my body. It was then that I knew that everything was going to be ok.Page 10The big day came and Libby looked absolutely gorgeous. As I walked down the aisle I looked up and saw my dad looking more handsome then I had ever seen before. They stood at the altar and promised to love each other until the day they die.Page 11I stayed with Grandma and Grandpa whilst dad and Libby went away for a few days. I wanted to go as well but I wasn't allowed. Grandma cooked lots of yummy food and Grandpa took me to the park.Page 1When dad finally came home I was so happy to see him. There behind him stood Libby and as I looked up at her I realised I missed her too. That night they told me of their travels and gave me shells they collected from the beach. One of the shells I could hear the ocean when placed against my ear. The others were all pearly and shiny, and sparkled as I placed them on the shelf.Page 1As I curled up in bed that night I thought about my life. How it had changed and how much better it is going to be now that Libby is here.I love my daddy!But I also love Libby too!


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Thursday, March 11, 2021

DELL

If you order your custom term paper from our custom writing service you will receive a perfectly written assignment on DELL. What we need from you is to provide us with your detailed paper instructions for our experienced writers to follow all of your specific writing requirements. Specify your order details, state the exact number of pages required and our custom writing professionals will deliver the best quality DELL paper right on time.


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Dell Computer Company sells custom built computers directly to the customer wherever in the world. With the power of direct and Dells team of talented people, it provides customers with superb value; high-quality, relevant technology; customized systems; superior service and support. Dell will establish a new direction, create a new method and search for a new track to make the products and services that are easy to buy, use and recycle. Dell will become the best computer company in the world and people will regard Dell as their fist choice. Dell can help people to change their ways on work, study and communion with each other. Dells greatest source of optimism lies with customers and Dells dedication to these principles continues to benefit customers first.


External Audit or Assessment


External audit can approximately separate to 5 parts (1) Economic forces () Social, Cultural, Demographic, and Environmental forces () Political, Legal, and Governmental forces (4) Technological forces (5) Competitive forces. The changes of external audit will influence the variety of the products and the requirements of the consumers. If we can realize and utilize the external audit then we can catch the opportunity and make a success in the competitive market.


Now, aim at Dell Computer Company, we choose some primary forces, which can make great opportunity or crisis to Dell, as our focuses.


1. THREAT


Since the American market occupied 70% of Dell's net revenue in 00, so we will focus on it to illuminate the effects of economic forces. Some examples are listed below


(1) US Economy Stays Lackluster In 00 Q1


¡°The US economy continued to struggle in the first quarter of the year. Real GDP grew at an annual rate of 1.6% in the first quarter, a minimal improvement from the sluggish 1.4% pace of the fourth quarter. [1]


The US economy continues to disinflate. It is undermined in part by the uncertainty relating to the Iraqi war and the relationship between US and Euro. The purchasing power of the customers as a whole will drop. And also, for the individuals, people will reduce their consumption on the high-technical products. Some ones maybe delay their plans on buying a new computer or updating the old one, which means computer companies, will decrease their shipment. Other people who have to equip one will make their purchase plan more prudent. That is, they will give up extravagant accessories to save money. So, Dell, if he can provides custom build, high performance-price rate computers, he will become consumer's first choice. Then the disadvantageous factor, lackluster of the US economic, will change to an opportunity to Dell.


() US Employment Stays Weak


¡°Weakening confidence has also contributed to firms holding back on hiring. As a result, employment has declined in three of the last four months through March by an average of around 100,000 per month. ¡°[]


High unemployment-rate will change the consumer's method of purchasing. With the unemployment-rate raising, when people feel there are so many uncertainties in the future in their life, they will save money to avoid the risk and they wouldn't spend money especially on the high-technical consumable. This will strike the IT industry and Dell can not get away.


() War in Iraq and Its Aftermath


From the left fig [], we can predict that, like the Gulf War I, the US business confidence will comeback to a proper level quickly after the Iraq War.


The war with Iraq is not helping given it may ultimately add to instability in the Middle East but will inspire more mass terrorist acts. It wills likely act to ensure that we remain in a low return environment for shares for some time to come. The share markets remain cheap relative to other financial assets and the investor sentiment is still very negative. Along with this, Dell should establish a longtime stratagem to deal with the uncertain of the states of the global economic development.


(4) SARS (severe acute respiratory syndrome) Impact IT Supply Chain


The spread of SARS is already affecting professional sports and the airline and tourism industries and it could impact IT supply chain. ¡°At a minimum, the SARS epidemic will cause schedule slippages and disrupt the aggressive growth plans that global electronics companies have for the affected geographies. [4] ¡°Theres a risk that Western tech brands that outsource to Taiwanese companies will gradually adjust their strategies and support contract manufacturers with plants elsewhere to avoid putting all of their eggs in one basket. [5]


Many accessories and main parts are manufactured in P.R. China and other Asian countries. Because of SARS, the plants have to face the threat of stop production. To the computer companies, this accident will influence the shipment and the contracts. Besides the supply, they may also have the problems in marketing, for people are required to stay at home. Dell should increase his purchase channel to ensure his accessory's quantity and quality, then Dell will maintain his produce-and-sale's chain.


(5) Competitive Forces from HP & IBM


HP-Compaq and IBM are two of the mainly competitors to Dell in the computer market. Well know the competitors are very important to design Dell's stratagem.


¡°HP has done a terrific job in lowering costs and improving margins. It became the No. computer maker. HP competes against IBM in the market for profitable server- and mainframe-like computers and computer services, and against Dell in personal computers and low- to mid-range servers that use Intel microprocessors. [6] Now, HP sharpens dual-brand PC focus. ¡°HP wants to use the two brands to go after two distinct segments of the market, with HP attacking the high-end and the Compaq brand designed to compete on price and on bang for the buck. [7]


¡°Although our revenue from continuing operations of $81. billion was off percent from 001 and our earnings decreased 5 percent, to $5. billion, all of our core businesses¡ªfrom servers to storage systems, to middleware, to services-gained market share in 00. This is important. It means we will emerge in an even stronger position, relative to our competitors. [8]


Now, HP and Compaq have well off finished their incorporate, new company has build a new stratagem for his development. IBM has changed his main-focus and stratagem on the service. Dell cannot reduce his attention on his competitors, on the contrary, he must find out his competitors' strong suits and shortages. Dell is well positioned to leverage its business model with 7 percent operating margins versus below breakeven for both (HPs) and (Compaqs) PC divisions. He has got the advantages on the market share and customer's satisfaction. It is Dell's predominance and he must keep it. But, for the services-gained market is a high-return field and it is just the shortage for Dell. So, Dell must expend his work field and can't be focus on the computer only and to get a new profit gained-point.


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Wednesday, March 10, 2021

Costing System

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1. Costing System


1.1 Illustrate the costing system currently used by Devon Quality in Cost Centre


The costing system currently used by Devon Quality Dairy in the Cost Centre is a traditional costing system this is because in this case study Devon Quality Dairy are allocating there expenses to products using volume based drivers. In this case study, the resources consumed by Devon's Cost Centre are depreciation, labour, utilities and other, which are all of the costs that have been incurred in production that cannot be traced directly to the products.


The traditional costing system uses a single plantwide overhead rate based on output volume to allocate factory overhead costs to the products. The factory overhead rate is total factory overhead divided by the cost driver. In this case the cost driver is pounds of butterfat. The pounds of butterfat sold are chosen as the cost driver for Devon's because the pounds of butterfat are attributed to Devon's purchase costs, which were indicated in the information in the article.


1. Comment on the appropriateness of "pounds of butterfat" as an allocation base for the overhead costs in Cost Centre . Would you suggest a different allocation base?


Pounds of Butterfat as an allocation base for the overhead costs in Cost Centre aren't very appropriate. This is because the costs in Cost Centre don't actually reflect the specific activities that are performed or costs in this cost centre. In Cost Centre , the overhead costs are depreciation, labour and utilities. These overhead costs have absolutely no correlation with the amount of pounds of butterfat used per product. Depreciation expense is incurred from the devaluation of the factories machinery, labour is used to operate and maintain this machinery, and utilities are all of the utility costs that are incurred by the factory within their daily operations.


It is because of this that we believe that Devon should use a different allocation base, and that base should be annual batches produced. We believe that annual batches produced will be a far better allocation base because from these batches you are able effectively determine the actual volume of ice creams mix that is produced by Devon Quality Dairy.


Knowing the annual batches that are produced are a far better method of cost allocation because this cost driver actual does reflect the indirect costs that are incurred by Devon. Depreciation, labour and utilities are directly correlated to the amount of batches that are produced, because the more batches that are produced the more the cost are going to increase.


Therefore, we deem that Devon Quality Dairy would be far advantaged if they were to change there cost driver from the pounds of butterfat, to batches produced annually.


1. Reconstruct the cost allocation formula for the overhead rates shown in Table .


Factory Overhead Rate = Total Factory Overhead


Annual Batches Produced


= 61860


000


= $180.1 per batch


Delivery Overhead Rate = Total Delivery Cost


Annual Batches Produced


= 108400


000


= $54.0 per batch


Selling and Administration


Overhead Costs = Total Selling and Admin Costs


Annual Batches Produced


= 600


000


= $146.80 per batch


. McDonald's Order


.1 What are the relevant costs to this order?


Relevant cost are defined as costs that change under two or more decision alternatives, thus the relevant costs associated with the McDonalds order are


The required purchase of additional refrigerated delivery trucks


Extra gas and maintenance cost for the trucks equalling $000 per truck per summer months.


Five additional summer drivers, costing $500 per month per driver through out the summer months


Therefore the relevant costs are


Direct Costs (1,000,000$1.607) = $ 1,607,000


Indirect Costs (1,000,000(0.17+0.11+0.014)) = $ 78,000


Additional Truck Costs (150,000) = $ 450,000


Extra Gas and Maintenance Costs (,000) = $ 18,000


Additional Summer Drivers (,5005) = $ 5,500


Total Relevant Costs for McDonalds Order = $ ,405,500


. Should the order be accepted?


To determine if we will accept this McDonalds order, we need to find out what the unit contribution margin is for this special offer.


Unit Contribution Margin = Unit Sales Price - Unit Variable Cost


McDonalds Order


Unit Sales Price 1.4


less Unit Variable Costs


Direct Costs 1.607


Indirect Costs 0.78 1.885


Unit Contribution Margin 0.055


From these calculations we found that the McDonald's Order will produce a positive contribution margin of $0.055 per unit. Meaning that for this order Devon would receive a contribution margin of $55,000 (0.0551,000,000). Therefore, we believe that Devon Quality Dairy should accept the McDonald's Order.


. Will your decision change if all orders have to yield the desired target of 15% mark-up?


McDonalds Order with 15% Mark-up


Unit Sales Price 1.4


less Unit Variable Costs


Direct Costs 1.607


Indirect Costs 0.78


15% Mark-up 0.8 .168


Unit Contribution Margin -0.8


From these calculations we found that the McDonald's order with the 15% mark-up will produce a negative contribution margin of -$0.8 per unit. Meaning that from this order Devon would receive a contribution margin of -$8,000


(-0.81,000,000). Therefore, our decision would change if all orders had to yield the desired target of 15%. When the 15% mark-up is desired we would advise Devon not to accept the order.


4.4 Identify any qualitative issues that should be considered prior to accepting this order.


The first issue that Devon Quality Dairy has to consider is weather the extra mast order of 1,000,000 gallons would cause a strain on the quality of the product? Even though the new equipment enables the company to double its packaging capacity but the production process still remains the same and with the sudden new product requirement would this set the quality of the products back.


They will have to determine if the other departments such as the quality control can cope with the increase number of productions.


They will need to evaluate if they would need to increase their services from the administrative department, as they will have to take up new ordering processes for this new contract. This could also result in unseen future costs that might be involved, with a new ordering system.


An important issue that Devon should consider is how their existing managers will react to the special price they are offering to McDonalds? Currently they are charging their existing customers $.11 per gallon but if they accept the McDonalds order they will be charging them only$1.4 per gallon.


A problem could also arise from their current and potential customers who might also demand the same price that McDonalds will receive. Which could in the long run lose these customers or mean that Devon would have to find improved ways to lower their costs, to be able to sell at this lower price.


They would have to determine how long the McDonald's Ordering contract would last for, and if the price could be evaluated after each financial year. This would become apparent because costs can change from year to year, and if Devon isn't able to change their prices to correlate with the added costs, they could be losing significant amounts of money through the McDonalds deal in the future.


. Activity Based Costing


.1 Briefly comment if activity based costing would benefit Devon Quality Dairy?


Activity based costing (ABC) would benefit Devon significantly, because ABC is a cost allocation system that assigns costs to products, services, or customers based upon the consumption of resources caused by activities. While there current costing system is a volume-based costing system, that is only useful when direct labour and materials are the only predetermined factors of production.


In the case of Devon where they have many predetermined factors ABC analysis is far more accurate. With ABC resources are assigned to activities, from which these activities are assigned to cost objects based upon the activities used by the company.


It is because of this we that an activity based costing system would be extremely beneficial for Devon's analysis of their costs.


. Devon Quality Dairy have asked you to undertake an initial ABC analysis using the following activity breakdown.


Activity Total Costs Cost Driver Cost Driver Cost Rate


Amount


Pasteurisation and Separation 1,111,550 Raw Milk Gallons 60,000,000 $ 0.0185


Bottling Labour 500,000 Gallons of Mix 11,600,000 $ 0.041


Other Mix Department Costs ,007,070 Number of Batches 000 $1,00.550


Delivery Stop Costs 840,000 Number of Stops 84000 $ 10.0000


Other Delivery Costs 1,068,000 Gallons of Mix 11,600,000 $ 0.01


Selling and Administration ,600 Number of Orders 84,000 $ .45


. Prepare a new cost estimate for the McDonald's order using the activity cost rates.


McDonalds Order using Activity Based Costing


Sales Revenue 1,40,000


less Variable Costs


Direct Cost 1,607,000


Indirect Costs


Factory Overhead


- Pasteurisation and Separation 55,500


- Bottling Labour 4,100


- Other Mix Department 0 8,600


Delivery Costs


- Delivery Stop Costs 46,800


- Other Delivery Costs ,100 18,00


Selling and Administration


- Selling and Admin Costs 16,57 16,57 5,857 1,860,857


Contribution Margin from McDonalds Order using ABC $ 7,14


Calculation


Using batch size as an allocation base.


a One batch can produce 10,000 gallons of mix. So ,000 batches can produce 0,000,000 gallons of mix.


b Devon currently produces 0,000,000 gallons of mix, but only sells 11,600,000 gallons of mix, meaning they will not incur any additional batch costs for the McDonalds Order.


c With the McDonalds Order Devon will need to deliver to 0 restaurants, three times per week.


Sales Revenue = $1.41,000,000


Direct Costs = $1.6071,000,000


Pasteurisation and Separation = $0.0185(60,000,000/0,000,000)1,000,000 a


Bottling Labour Costs = $0.0411,000,000


Other Mix Department Costs = $10,00.550 b


Delivery Costs = $1005c


Other Delivery Costs = $0.011,000,000


Selling and Administration = $.4505 c


.4 Would you accept the McDonald's order?


After using the activity based costing to calculate the overhead costs in relation to the operations involved with McDonald's order, we believe that Devon should accept the special order. With the application of ABC, we found that Devon actually incurs less costs than it did before, when it was operating under the traditional costing system. With ABC being a more in-depth system of costing you could be reasonably sure of the costs and would definitely accept the McDonalds Order.


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Friday, March 5, 2021

Career Essay

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I have always wanted to be able to do the same work that my father does. I have always found it fascinating when there are only a few people who organize, lead, and manage the people, materials, and processes of construction in a company. I always enjoy being outside and working with my hands. Over the summers I work for construction companies in Colorado, and want to continue that when I get out of College. I feel that if I come out of college with a BSBA in Real Estate and Construction management that I will be able to find a good job that will allow me to get my feet wet in the construction business. I then would be able to work my way up the corporate ladder, where I can become an owner of a Construction company just like my father.


Construction managers are the planners and the directors of the construction companies. They are similar to doctors in the respect that they are required to be on call 4 hours a day, something on the site might go wrong and need their immediate attention. There are many ways to become employed as a construction manager. They may be owners or employees of a construction management or contracting firm. They may also work under a contract as an employee for the contractor, developer, owner or management firm. They represent the owner or developer on the construction site, even thought they might not have a direct role in the actual construction. Construction managers determine the labor requirements that will be needed for a certain site. They are also responsible for ensuring that the work will be completed on time and correctly.


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In the year 000 construction managers held about 08,000 jobs in the US. 75,000 construction managers where self-employed, 4 percent where employed by specialty trade contractors, and 5 percent where employed in the construction industry. 8 percent where employed by general building contractors. The U.S. Commerce Department Census Bureau tells us that in February of 001 the construction put in place was estimated at 84. billion, which is an increase of 18. billion dollars from the past year. Both residential and construction companies are looking for experiment professionals, in all areas and levels of business.


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Salary ranges depend on where you are in the U.S. Someone in New York City is going to receive more than someone who is working in the mid-west. The median annual earrings in year 000 for construction managers were $58,50. In the middle percent, construction management workers earned between $44,710 and $5850, when the top ten earned more than $10860, and the lowest ten earned less than $4,80. In 001, the National Association of Colleges and Employers found that candidates that had a bachelor's degree in construction management earned an average of $40,740 a year. These numbers vary on the location, experience and education that an employee would have.


I know that I have wanted to own and run a construction company, but I will have to start at the bottom and work my way up. I feel that if I come out of college with a master's degree that I would over qualified for building small buildings and not have enough experience to build the very large construction or work for the large management company. It is believed that job opportunities for construction managers will continue to be available through the year 010, due to the number of jobs that will need to be replaced and the growth. I feel that this will allow me to get in and start to receive my experience so I can begin my path to the top.


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