Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i need help with this question here you have the data The Company Green Stream >> Inc. -- located in Saint Tropez-France-sells golf equipments: clubs,

i need help with this question
here you have the data
image text in transcribed
image text in transcribed
image text in transcribed
The Company Green Stream >> Inc. -- located in Saint Tropez-France-sells golf equipments: clubs, bags. shoes, accessories... Sales are made on the national market and in Europe. Last year, its Managing Director- Mr. Wood -decided to launch a new range of products: golf trolleys. A trolley can help a golf player to carry his heavy bag (10 to 12 kg.) all along the 6km golf course. The company assembles and sells 2 models of trolleys: The "Classic" model: in high strength aluminum - light weight. This model is foldable with removable wheels for an easier storage and transportation. The "Electric model": with an electric engine and with arrangements providing a higher comfort and very modern and nice design. a According to a recent market survey. the classic trolley market segment is threatened by the competition of specialist chains stores. The market segment is likely to be stagnating. On the contrary, the electric trolley market segment is supposed to increase by 20% per year. Hence. Mr. Wood wants to increase his electric trolleys production. He plans to re-allocate a part of the today's assembling area of classic trolleys for making more "electric trolleys" and to launch a big advertising You are the new controller of "Green Stream Company. and Mr. Wood relies on your analysis prior to make his final decision. He asked you to carry out two studies. campaign Questions: 1-First Analysis: Current product costing Basing your analysis on the current cost structure of the Trolley Department of Green Stream Company (exhibit 1): 1-1. Please calculate the manufacturing cost. the full product costing and the margin of each trolley model per unit. Classic Model Electric Model Manufacturing cost per unit Full costing Margin Margin in % Calculation explanations : Exhibit 1: Green Stream Company- Trolleys Department Today's cost structure-year end. Direct costs Nber. of units sold (trolleys) Classic Model Electric Model 836 Selling Price per unit 164 Initial and final inventory 122 311 Materials costs per unit 0 0 18,3 Direct Labour hours per unit 49,6 0,5 hour 1,5 hour Direct Labour costs per hour 24,4 24,4 Indirect costs Indirect costs are today allocated to each product according to very simple keys. Cost centers : Supplying Assembling Distribution TOTAL year end indirect costs Indirect costs Allocation key to the product (cost driver) 89 764,20 11 716,6 1 of material purchase 15 299,6 1 of sales 62 748 1 hour of direct labour

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Pricing And Hedging Financial Derivatives A Guide For Practitioners

Authors: Leonardo Marroni, Irene Perdomo

1st Edition

1119953715, 978-1119953715

More Books

Students also viewed these Finance questions

Question

3. examine special considerations relative to aggression and sport,

Answered: 1 week ago