Bill French Case Essay

1479 words - 6 pages

BILL FRENCH

I. BACKGROUND AND ISSUES
Bill French was staff accountant of Duo-Products Corporation. He was reporting to Wes Davidson and had been doing routine types of analytical work. In an informal manager’s meeting, Davidson invited Bill French to attend. French choose to present break-even data to determine the level at which the company must operate in order to break-even. During the meeting, French was challenged and questioned because his presentation failed to consider some aspects of the company’s operation such plans for expansion in sales and production, the product mix and prices on individual product basis since he was only using “averaging”. This is because of his ...view middle of the document...

Utilize 90 percent of plant capacity
5. The proper computation for profitable product mix
6. The proposed increase in price of product “C”
7. Taxes, dividends, union demands and product emphasis

V. ALTERNATIVE COURSES OF ACTION
1. Use Cost-volume-profit analysis in decision making.

Advantage/s Disadvantage/s
It is easy to understand. Mostly applicable only to business with single product
It is easy to determine the sales amount—in either unit or revenue terms—that is required to cover total costs (both fixed and variable).

2. Determine the level of the company must operate in order to breakeven.
Advantage/s Disadvantage/s
Measure profit and loss at different levels of production and sales. Assumes production and sales are
Predict the effect of changes in price of sales Time consuming to prepare.

VI. CONCLUSION AND RECCOMMENDATION
Break-even analysis especially by using profitgraphs or CVP analysis can help us understand the relationship between revenue and cost. However, it will only apply to business with single product. In a business with several products, it will only be applicable if each product has approximately the same contribution margin percentage.
If the business produces several products and they have different contribution margin percentages, weighted-average unit contribution for all products rather than the individual unit contribution margin is used as long as the product mix remains constant. Products A, B and C have different contribution margin percentage so simple averaging is not applicable.
If however, the business produces several products and they have different contribution margin percentages, weighted-average unit contribution for all products rather than the individual unit contribution margin as long as the product mix remains constant.
In instance when products have different unit contributions and when the product mix changes, it is applicable to treat each product as a separate entity and this require that all cost of the business be allocated to individual products. The break-even point on such is a the volume at which the total contribution of that product recovers that product’s equitable share of the company’s total fixed costs.

VII. ANSWERS TO QUESTIONS

1. What are the assumptions implicit in Bill French’s determination of his company’s break-even point?

The following assumptions are implicit in Bill French’s determination of the company’s break-even:
 By using the average of the 3 products, he assumed that there is only one break-even point for the firm which is 1,100,000 units.
 He assumed that the sales mix will remain constant.
 He assumed that total revenue and total expenses behave in a linear manner over the relevant range.
 Fixed cost has been assumed to be unchanged.
2. On the basis of French’s revised information, what does next year look like:
a) What is the break-even point?
Calculation of the break-even points using...

Other assignments on Bill French Case

Federal Gov Essay

4651 words - 19 pages lost trust society. Senator John Allen called a Makaka, to an Indian. French colonial people called the Indians that, and that was a derogative name. France and England, you’d get prison and heavy fines that would damage race relations. 02JUN2015 Third Approach to Politics and Government. “political science” 1) one of the “social sciences and these include; a. political science b. economis c

The Effect Of Organizational Culture Essay

2222 words - 9 pages . To analyze and look deeper into these issues, I evaluated and studied the following articles: Daniela, Ţogoe Greti, Mateş Dorel, and Mănescu Dragotoiu Mileva Valentina. Impact of Ethical Values Promoted by Professional Accountants on the Organizational Culture. Annals of the University Of Oradea, Economic Science Series 22.1 (2013): 1280-1285. Douglas, Patricia Casey, Ronald A. Davidson, and Bill N. Schwartz. The Effect of Organizational

Lokmanya Tilak

2430 words - 10 pages imprisonment which enabled him to read and write. During this time he wrote “Geeta Rahasya” in Marathi. He also learnt German and French through the “teach yourself” books. Meanwhile, in India, his wife passed away while Tilak was serving his term in Mandalay. * After completing his term, Tilak rejoined the Congress in 1916. From 1916-1918 he also helped in founding the All India Home Rule League with Joseph Baptista, Annie Besant and Mohammed Ali

Interpersonal Communication

3942 words - 16 pages vested in the explicit code. For example, human  interaction with computers and other highly scientific machines can be  considered a low context message because in order for computers to  interpret and "understand" a message, every statement must be very  precise and clearly relayed (Lustig et al, 1993). Within the American  culture, low context patterns are deeply rooted in the Bill of Rights.  The First Amendment has provided Americans

Ethics

3009 words - 13 pages Alps. Yet even he realized early the commercial dominance of the U.S. and eventually migrated to the U.S. Impact of Net Value drivers on issues of the value  Reach –   Opt-in and opt-out - For example in the sale of private information such as bank account there details. This has been made a law in Europe but not in USA.   Privacy issues Government Control – The French Government shutdown yahoo’s Nazi Memorabilia

Early Life And Education

4963 words - 20 pages since the foundation was launched in 2008 by former French president Jacques Chirac in order to promote world peace. Professor Yunus has appeared on The Daily Show with Jon Stewart and The Oprah Winfrey Show in 2006, The Colbert Report in 2008, Real Time with Bill Maher in 2009 and The Simpsons in 2010. On Google+, Professor Yunus is one of the most followed person worldwide, with over 1.7 million followers.[59] In 2012 Yunus was installed as

Minicase

5748 words - 23 pages influenced by such pseudo-sciences as Phrenology, the study of human skull characteristics and Anthropometry, the study of human body measurement. We discuss how finger-scan technology was influenced by French and British police advancements in the nineteenth century and still remain the most widely used Biometric technology today. Facial-scan technology is ... AD Copyright SANS Institute Author Retains Full Rights fu ll r igh ts

On Translation Of English Names From Cultural Perspective

5210 words - 21 pages meaning and connotation.They are untranslatable”.According to this theory, the best names translation methods should be the simplest transliteration methods. In general situations, especially during our daily communication with language, the translation of the foreigners’ name were treated with transliteration methods directly, even if the name of this person has another meaning. Such as Bill Gates (比尔.盖茨), George Bush(乔治.布什), etc.,This paper don’t

Sg Cowen

6886 words - 28 pages from this desire to provide support. “The most important clients are inside, not outside. I really believe that,” he said. No Hiring Criteria Do Rae tried to formalize the criteria by using grid sheets for the bankers to fill out and having them vote and make a case on behalf of their candidate. There were definitely bankers who resisted any kind of “science” in this process. Bill Buchanan, HBS ‘86, was head of Equity Capital

International Management

3768 words - 16 pages subordinate to women in this society. They are answerable to their husbands or any other male figure in the society. This is very different from what is taking place in the United States. The US is the leading democracy in the world. The society and the government in general highly respect human rights. All Americans enjoys equal rights irrespective of their gender. The society respects the bill of rights and no one has the capacity to make a

I Dont Card

8787 words - 36 pages began the most public part of his career. Upon his death, Philadelphia gave him a funeral befitting the man who had, as French economist Anne-Robert-Jacques Turgot put it, “snatched the lightning from the skies and the sceptre from tyrants.” In his autobiography, Franklin mentions many men—both English and American—who helped him, interested him, or challenged him with their views or their wit. On many occasions, he established friendships with men

Similar Documents

Bill French Essay

287 words - 2 pages 1. Bill has assumed that Duo-Products' relevant range for fixed costs will remain constant even after planned expansion of production capacity. He has also assumed that there is just one breakeven point for the firm (by taking the average of the 3 products). He has also assumed that the sales mix will remain constant. Two other assumptions are that total revenue and total expenses behave in a linear manner over the relevant range. These 2 are

International Business Essay

674 words - 3 pages to the instruction contained in the covering letter of the remitting bank, which contained no instructions regarding the coacceptance of the documents by the collecting bank (French Bank). In this case, the remitting bank had failed to undertake proper scrutiny of the collection documents received by them. 2) The exporter should not invent and provide any unilateral directions without the underlying agreement and concurrence of the

The Uniform Commercial Code (Ucc) Essay

1366 words - 6 pages interpret this type of law is known as casuistry, or case-based reasoning. It is a strict, principle-based reasoning that uses the circumstances of a case to evaluate the laws that are applicable. Decisions that were made about similar cases are valuable, and the case in question is evaluated on the basis of past cases. The strength of the similarity among the cases, in turn, strengthens the reasoning based on them. B. The term "common law" also

Informal Learning Essay

1088 words - 5 pages when she went out to a restaurant with her parents. Anna ordered a hamburger, french fries, and fruit punch. She always ordered just about the same food whenever they went out to eat, as she knew that hamburgers were one of her favorite foods. The restaurant was crowded that evening and was quite noisy, as there were a lot of children present. This did not bother Anna, as she was happy to be out at a restaurant. She ate all of her food as soon