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
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.
CONT….. The main key concern point is that Giberson has no pricing strategy for the production. His financial position is deteriorating.
PROBLEM Book keeping Need of additional resources . No pricing strategy. Rapid deterioration of financial position.
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
CRITERIA Batch wise cost Production time Weekly production
OPTIONS To maintain batch wise profit. Maintenance of accounts.
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
Annual Loss COGSRevenue - (materials) - Operating Expense = Net Loss$31,080 - $857 - $52,515 = - 22,292
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.
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
DECISION To prepare the books of accounts. To evaluate cost as per batch because they are doing batch wise costing.
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.