Case Study on Giberson Glass Studio

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Case Study on Giberson Glass Studio

  1. 1. PRESENTED BY:- GROUP NO. A5 Chandan Pahelwani (11047) Himani Parihar (11049) Nikita Bali (11004) Sonia Dadlani (10022) Sunny Bhuva (11010) Presented to:- Prof. Deepa Mishra
  2. 2. GIST OF THE CASE Giberson is well known in making different types of glasses. Felicia coates,an MBA student visiting giberson’s glass studio. She shadows upon financial statement of giberson’s which were previously taken care by Mrs.giberson which was neglected after their divorce.
  3. 3. CONT….. The main key concern point is that Giberson has no pricing strategy for the production. His financial position is deteriorating.
  4. 4. PROBLEM Book keeping Need of additional resources . No pricing strategy. Rapid deterioration of financial position.
  5. 5. SWOT ANALYSIS • Qualit • Extra y cost(labour) • Sales • Operating cost • Orders • Need of additional financing Strength Weakness • Life span of facilities Opportunity Threats • Trade • Environmen shows taIssues • Information • Loosing al customers technology
  6. 6. CRITERIA Batch wise cost Production time Weekly production
  7. 7. OPTIONS To maintain batch wise profit. Maintenance of accounts.
  8. 8. OPERATING COST Cost per Operating Item Months month CostsOffice Supplies $ 25 10 $ 250Hand Tools/Manufacturing Supplies $ 150 10 $ 1,500P/T Labor($5/hr) $ 100 10 $ 1000Other Operating Costs $ 640 12 $ 7,680Truck $ 205 12 $ 2,460Furnace (GAS) $ 1,000 10 $10,000Depreciation on Furnace (2 Years) $ 208 12 $ 2,500Depreciation on Equipment (8 Years) $ 31 12 $ 375Depreciation on Truck (5 Years) $ 142 12 $ 1,700Depreciation on Gas Tanks (8 Years) $ 4 12 $ 50Salary $ 2,083 12 $ 25,000 TOTAL $ 52,515
  9. 9. TOTAL ANNUAL REVENUE Category Unit Price #Units SalesPattern Glass $9 760 $6,840Paperweights $15 400 $6,000Wrapped Tumblers $8 1280 $10,240Vases $25 320 $8,000 Total Annual Revenue $31,080
  10. 10. Annual Loss COGSRevenue - (materials) - Operating Expense = Net Loss$31,080 - $857 - $52,515 = - 22,292
  11. 11. ACTION PLAN To find the relevant cost batch wise so that he can gains minimum margin profit. Also he should maintain the books of accounts.
  12. 12. MATERIAL BATCH WISE COSTCost per batch = 21.42Total lbs. = 169If Increase material used to 200 batch then169 - - - 21.42200 - - - - ?? = 25.35 CostBatch Total work Total Cost done in week Old 21.42 40 weeks 856.8 New 25.35 40 weeks 1014
  13. 13. DECISION To prepare the books of accounts. To evaluate cost as per batch because they are doing batch wise costing.
  14. 14. CONTINGENCY PLAN To increase the cost batch wise so that profit can be easily maintained. Reduce the units in batch and keep the price same so that actual gain can be done.

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