Question
Can you please help me with my homework below thankyou in advanced Monaco Style, an online retailer of homewares, sources wall art through two suppliers
Can you please help me with my homework below thankyou in advanced
Monaco Style, an online retailer of homewares, sources wall art through two suppliers who are based in Spain. These suppliers are Prints International and Frames Co. The firm's management accounting team has prepared the following analysis of the quarterly unit, order and supplier level costs associated with these suppliers:
Activity | Total cost of activity per quarter | Activity level per quarter - Prints International | Activity level per quarter - Frames Co. |
Order items from supplier | $122,600 | 620 orders | 305 orders |
Repair items with minor damage | $50,400 | 1,870 repairs | 2,100 repairs |
Return defective units to supplier | $18,600 | 150 units returned | 420 units returned |
Track and manage late deliveries | $15,900 | 20 late shipments | 35 late shipments |
Manage supplier disputes | $24,200 | 1 dispute | 3 disputes |
Engage in joint suppler new product research and development projects | $64,100 | 1 project | 2 projects |
Supplier relationship manager visits | $18,500 | 4 visits | 1 visit |
Lost sales due to late deliveries | $19,500 | 10 late shipments | 2 late shipments |
Monaco Style typically purchases 4,000 units from Prints International and 2,800 units from Frames Co. per quarter, respectively. Prints International charges $850 per unit whilst Frames Co. charges $790 per unit, respectively. Regardless of supplier, each print is sold by Monaco Style for $1,500 per unit.
Monaco Style's management accounting team has also captured the following information regarding the environmental performance of these two suppliers:
Environmental impact | Prints International | Frames Co. |
Estimated emissions per unit | 20 kgs | 30 kgs |
Environmental certifications | Global recycling standard | None |
Percentage of recycled content used in packaging | 40% | 70% |
Percentage of sustainability verified sourced timber | 95% | 90% |
Required:
You have been commissioned by the CEO of Monaco Style to write paragraphs for a report which discusses the overall financial and environmental performance of Prints International and Frames Co. As part of your report, you are required to:
- Utilise the information provided on supplier activity costs and calculate, discuss and compare the total cost of ownership associated with Prints International and Frames Co. (10 Marks).
- Identify and discuss potential initiatives that Monaco Style could undertake to manage the firm's total supplier activity costs (10 Marks).
- Discuss what the supplied environmental-related information reveals in regards to the comparative environmental performance of Prints International and Frames Co. (10 Marks)
- Suggest and discuss two other environmental-related KPIs that could be relevant in helping Monaco Style to understand the overall environmental performance of Prints International and Frames Co. (10 Marks).
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