Bell C plants located in the Midvest. The product ines run from relatively inexpensive touch-tone wall and desk phones to expensive, high quality cellular phones. CTB also operates a cable TV service in Ohio. The Cable Service Division offers three productsi a basic package with 25 channels: an enhanced package, which is the basic package plus 15 addtional channels and bvo movie channels: and a premium packige, which i the basic package plus 25 additional channels and three movie channels $16 $30 $40 Directly traced $3 Driver traced The unit costs are divided as follows: 70 percent production and 30 percent marketing and customer service. Direct lsbor cost is the only driver used for tracing. Typically, the division uses only production costs to deline unit costs. The preceding unit product cost information was provided at the request of the marketing manager and was the result of a special study. Dryce Youngers, the president of CTB, is reasenably satisfied with the performance of the Catble Service Division, March's performance is fairly typical of what has been happening over the past tve years. The Phone Division, however s another matter. Its overall profit performance has been decining. Te years ago, income before income tases had been about 25 percent of sales. March's dismal performance was alse typical for what has been happening this year and is expected to continue- unless some action by managemant is taken to reverse the trend. During March, the Phone Division reported the folloswing results Materials, March 1 $23,000 130.000 45,000 Bell C plants located in the Midvest. The product ines run from relatively inexpensive touch-tone wall and desk phones to expensive, high quality cellular phones. CTB also operates a cable TV service in Ohio. The Cable Service Division offers three productsi a basic package with 25 channels: an enhanced package, which is the basic package plus 15 addtional channels and bvo movie channels: and a premium packige, which i the basic package plus 25 additional channels and three movie channels $16 $30 $40 Directly traced $3 Driver traced The unit costs are divided as follows: 70 percent production and 30 percent marketing and customer service. Direct lsbor cost is the only driver used for tracing. Typically, the division uses only production costs to deline unit costs. The preceding unit product cost information was provided at the request of the marketing manager and was the result of a special study. Dryce Youngers, the president of CTB, is reasenably satisfied with the performance of the Catble Service Division, March's performance is fairly typical of what has been happening over the past tve years. The Phone Division, however s another matter. Its overall profit performance has been decining. Te years ago, income before income tases had been about 25 percent of sales. March's dismal performance was alse typical for what has been happening this year and is expected to continue- unless some action by managemant is taken to reverse the trend. During March, the Phone Division reported the folloswing results Materials, March 1 $23,000 130.000 45,000
