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Part 1 Chapters 1-4 ications industry. CTB has two Cable Tech Bell ates in the telecommuni manufactures the Phone Division and the Cable oper Division.

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Part 1 Chapters 1-4 ications industry. CTB has two Cable Tech Bell ates in the telecommuni manufactures the Phone Division and the Cable oper Division. The Phone Division several plants located in the Midwest. product ines run from also operates a cable TV and to high-quality phones. CTB with The Cable Service Division offers three products: a basic package movie package, which is the basic package plus 15 al channels and two apn which is the basic package plus 25 channels and three movie channels The Cable Service Division ported the following activity for the month of March: re Enhanced Basic Sales (units) $16 Price per unit Unit costs: Directly traced 2 $15 $13 $100 The unit costs are divided as follows: 7o per production and 30 percent marketing and Direct labor cost is the only driver sed for tracing. Typically the division uses only production u costs to costs. The preceding unit product cost information was the marketing manager and was the result of a special study Bryce Youngers, the president of satisfied th the performance of the Cabi Service Division. March's perf is fairly typical of what has been happening over the pastt years. The Phone Division, however, is another matter. Its overall profit performance has been ded ng. Two years ago, income before income taxes had been about 25 percent of sales. March's dism ormance was also typical for what has been happening this year and is unless some action by management is taken to reverse the trend. During March, the Phone Divis the following results: nventories: Materials, March 1 23,000 Materials, March 31 Work in process, March 1 130,000 Work in process, March 31 45,000 Finished goods, March 1 480,000 Finished goods, March 31 375,000 costs Direct labor Plant and equipment depreciation $117,000 Materials handling 85,000 inspections Scheduling Plant supervision 12,000

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