please show in excel along with any formulas

. Sprint 4 76% 2:54 PM Blue Ridge Mfg.pdf 1 of 5 Cases 5-1 Blue Ridge Manufacturing BACKGROUND: Blue Ridge Manufacturing is one of our companies that produces and towels for the US.sportowe A sportowel is a towel that has the con tra lege prin it. The called sports owbother mour popular for distri cts with sporting the Super Bowl, NCAA Final Four Au National Gr ament and the US Open Tennis Tour Towels wie college, NBA and NFL team logos, and promotions for commercial products such as soft drinks, beer, fast food chains, are also higien The firm designs, knits, print and embroiders towels. The firm knits all the towels itsells and track cows for towel production separately from the cost to s ize the towels Seventy-five percent of its orders include logo design, while the balance are printy and require the payment of a license fee for the logood. However, about 15% of its orders include embroidery. Towels made in the stres (18x Mom, Band (12" x 20 m id range (15224"). The production cycle for an order of white sowels is three days. If a customer wants colored towel, the basic white towel made by Blue Ridge is sent to a dyeing firm, which extends the production cycle of an order by three days. Also, casionally, customers order towels in sizes other than the three standard ies. These towels are called "special" The firm now produces a "medium quality towel. They have had some difficulty with the staying power of the material printed on these towels, which is inbuted to the towel quality, the ink and the printing proces Customers have complained that the ink lays on the surface and it cracks and peels off Blue Ridge recently made a break through in developing an ink that soakes into the towel, won't wash out and is onoxic A big advantage of this ink is that it avoids EPA disposal requirements because is can be washed down the drain". Due to these characteristics of its wink, Blue Ridge is considering upgrading the quality of the best towel it produces because it will take the ink better, both the lowel and the ink will last longer and the product will vel at a higher price. If it takes the step, the company will evaluate expanding its marketing and sales are with the objective of going national CUSTOMERS: Except for a few non-regional chains, Bhe Ridge's predominantly in the southeastm e s. The company is its products to 986 different . These customers differ primarily in the volume of their purcha se wwwamen ifies each customer in one of three groups are customers, medis(154ce d mail (824 customers). Large customers are primarily o nal chains, small customers are single store operations (including pro shops golf courses and medium-se customer callchain, Bergengle stores or licensing for professional sports teams and factures of products. Table I give the product customer in statistics for 2001 Blue Ridge has a different approach to customers in each of the categories. A small group of shoes people well directly to buyers in the large customer category. Independe n c e presentes, como call on the l eader ordemanager of one is the category. As placed in regional and paper is the r e who mail in their den Blue Ridge does we d isalarder en boud (FOB) forge.com their fr o st MANUFACTURING Blue Ridge has a medem k ing and printing plant in the foothills of North Carolina's Ridge Mountain Upgrading the facilities over recent years was p anied by the introduction of activity based coing (ABC) Comes and Reading The Meraw-Hill Companies, Inc 2005 O 76% ..Sprint X 2:54 PM Blue Ridge Mfg.pdf system to determined the cost o g system is fairly white and managements confidence in the cry of the manufacturing cost figures for each product Table w are firm's unit cost for various Company is to adapting d a ting techniques c a ring and iem. The water for the success of such technique is evolved work powi ada m o d dition, workers are allowed even www free work och for coming out and work i ng the ABC j PERFORMANCE The copy of However, the come concomodabout the othe r the r e argsmedlemmedov port Management is for identifying customers that high profit or dep thal do s h ver the p oor them. Under the pro p ose determine the cost of pating individual customers With the introduction of AICI w may be possible to determine cop y . The shows how the admitive and selling o g andre signed betwee vais function within the selling and marketing areas and to substivities in the selling and marketing Table 4 provides a list of selling and marketing activities and the activity bone to use in signing costs to each REQUIRED: The managers of Rig Mencaring have hired your consulting firm to advise them on the potential of using cost analysis in wing the profitability of their customer accounts Your analysis should include: 1. What is lue Ridge's competitive strategy 2 What type of cool system does Blue Ridge and is il consent with their strategy Develop a spreadsheet analysis which can be used to the profitability of the three customer group of Rid large, medium and all customer accounts. Use the information is Tables 1-4 to trace and allocate the cos necessary for the analysis Blocher, Cokin Che The Mouw Cow Mo d e Companies, Inc 2008 .Sprint 4 76% 2:54 PM Blue Ridge Mfg.pdf TABLET BLUE RIDGE MANUFACTURING Sales Information er States Sales is by Cat Acente Product d Rag Mid-Site Hand 40 16.000 1552 19.966 10.550 10.10 94954 65.500 15100 Special 3.0 276200 100250 5959 20536 SHOR,762 S544 6,490 9,935 SIR,744 Number of Units Sold Number of Units m idered Number of Unit Dyed Sale Volume Reve Number of Order Received Number of Shanes Made Number of invoices Sent Accounts with Balance 60 Days 117406 29,194 12.128 SUR024 SI 541 4737 42793 SOS 6105 6501 TABLE 2 BLUE RIDGE MANUFACTURING Unit Cost Information Line Direct Manufacturing Costs Per Unit Unit Quantity Price Material Labor Overhead Towels 017 $119 103 020 Regal Mid-Sie Hand Special 54,400 65,500 151.800 4.500 $160 3.20 2.55 4.00 0.13 50 60 0.50 0:39 0.67 00 0 29 Line Direct Costs of Customizing Per Unit Quantity Cast Material Labor Cheb 30000 30000 Dy Ery 552.400 42298 41. - 11 0 30072 01 00000 1100 12720 .0006 0.1750 D abwe R19.00 (schung reco verage par le Card Reading The Mew-Hill Companies in 2008 0 4 76% ..Sprint X 2:54 PM Blue Ridge Mfg.pdf TABLE 3 BLUE RIDGE MANUFACTURING Selling and Administrative Conad Activities Costs Incurred in Each Function (Shipping, Sales, Marketing Directly Asigned Tes Te Sales Marketing A rtis $120000 17000 170 .00 56100SIMO Selling 15000 1500 17500 0 3:23.000 2.32.500 3135.29 $29.2 Each function is used for the following Activities Percentage of Sailing rod Administrative Activities Shipping Entering Purchase Orders Commi Shipping Activities Invoicing Cost to Make Sales Calle Checking Credit Sample Catalog Info Special Handling charges Distribution Management Marketing by Customer Type Advertising Promotion Marketing Administrative Office Support LiFe Now ,100 of the GAA directly . This the b i g city Blocher, Stout, Cokins, Cher: Cost Management de The Moww Hill Companies, Ine 2008 .. Sprint 04 76% 2:54 PM Blue Ridge Mfg.pdf 5 of 5 TABLE4 BLUE RIDGE MANUFACTURING Activities and Cost drivers Cost Drivers for Allocating costs of Activities to Customer Groups (Large, Medium, Small) Activity Entering Purchase Orders Commissions Shipping Activities Invoicing Cost to Make Sales Calls Checking Credit Samples, Catalog Info Special Handling Charges Distribution Management Marketing, by Customer Type Advertising Promotion Marketing Administrative Office Support Licenses, Fees Cost Driver Number of Orders Sales Dollars with Medium Customers Number of Shipments Number of Invoices Sales Dollars with Large Customers Percent Accounts >60 Days Sales Dollars Management Estimate Sales Dollars Sales Dollars Management Estimate? Number of Units Sold Number of Units Sold' Sales Dollars with Medium Customers to to all customers all sized customer 79 20% to medium-se come 125% to medium-se cu Excluding Specials Excluding Specials Cases and Readings The Moraw-Hill Companies, Inc 2008 . Sprint 4 76% 2:54 PM Blue Ridge Mfg.pdf 1 of 5 Cases 5-1 Blue Ridge Manufacturing BACKGROUND: Blue Ridge Manufacturing is one of our companies that produces and towels for the US.sportowe A sportowel is a towel that has the con tra lege prin it. The called sports owbother mour popular for distri cts with sporting the Super Bowl, NCAA Final Four Au National Gr ament and the US Open Tennis Tour Towels wie college, NBA and NFL team logos, and promotions for commercial products such as soft drinks, beer, fast food chains, are also higien The firm designs, knits, print and embroiders towels. The firm knits all the towels itsells and track cows for towel production separately from the cost to s ize the towels Seventy-five percent of its orders include logo design, while the balance are printy and require the payment of a license fee for the logood. However, about 15% of its orders include embroidery. Towels made in the stres (18x Mom, Band (12" x 20 m id range (15224"). The production cycle for an order of white sowels is three days. If a customer wants colored towel, the basic white towel made by Blue Ridge is sent to a dyeing firm, which extends the production cycle of an order by three days. Also, casionally, customers order towels in sizes other than the three standard ies. These towels are called "special" The firm now produces a "medium quality towel. They have had some difficulty with the staying power of the material printed on these towels, which is inbuted to the towel quality, the ink and the printing proces Customers have complained that the ink lays on the surface and it cracks and peels off Blue Ridge recently made a break through in developing an ink that soakes into the towel, won't wash out and is onoxic A big advantage of this ink is that it avoids EPA disposal requirements because is can be washed down the drain". Due to these characteristics of its wink, Blue Ridge is considering upgrading the quality of the best towel it produces because it will take the ink better, both the lowel and the ink will last longer and the product will vel at a higher price. If it takes the step, the company will evaluate expanding its marketing and sales are with the objective of going national CUSTOMERS: Except for a few non-regional chains, Bhe Ridge's predominantly in the southeastm e s. The company is its products to 986 different . These customers differ primarily in the volume of their purcha se wwwamen ifies each customer in one of three groups are customers, medis(154ce d mail (824 customers). Large customers are primarily o nal chains, small customers are single store operations (including pro shops golf courses and medium-se customer callchain, Bergengle stores or licensing for professional sports teams and factures of products. Table I give the product customer in statistics for 2001 Blue Ridge has a different approach to customers in each of the categories. A small group of shoes people well directly to buyers in the large customer category. Independe n c e presentes, como call on the l eader ordemanager of one is the category. As placed in regional and paper is the r e who mail in their den Blue Ridge does we d isalarder en boud (FOB) forge.com their fr o st MANUFACTURING Blue Ridge has a medem k ing and printing plant in the foothills of North Carolina's Ridge Mountain Upgrading the facilities over recent years was p anied by the introduction of activity based coing (ABC) Comes and Reading The Meraw-Hill Companies, Inc 2005 O 76% ..Sprint X 2:54 PM Blue Ridge Mfg.pdf system to determined the cost o g system is fairly white and managements confidence in the cry of the manufacturing cost figures for each product Table w are firm's unit cost for various Company is to adapting d a ting techniques c a ring and iem. The water for the success of such technique is evolved work powi ada m o d dition, workers are allowed even www free work och for coming out and work i ng the ABC j PERFORMANCE The copy of However, the come concomodabout the othe r the r e argsmedlemmedov port Management is for identifying customers that high profit or dep thal do s h ver the p oor them. Under the pro p ose determine the cost of pating individual customers With the introduction of AICI w may be possible to determine cop y . The shows how the admitive and selling o g andre signed betwee vais function within the selling and marketing areas and to substivities in the selling and marketing Table 4 provides a list of selling and marketing activities and the activity bone to use in signing costs to each REQUIRED: The managers of Rig Mencaring have hired your consulting firm to advise them on the potential of using cost analysis in wing the profitability of their customer accounts Your analysis should include: 1. What is lue Ridge's competitive strategy 2 What type of cool system does Blue Ridge and is il consent with their strategy Develop a spreadsheet analysis which can be used to the profitability of the three customer group of Rid large, medium and all customer accounts. Use the information is Tables 1-4 to trace and allocate the cos necessary for the analysis Blocher, Cokin Che The Mouw Cow Mo d e Companies, Inc 2008 .Sprint 4 76% 2:54 PM Blue Ridge Mfg.pdf TABLET BLUE RIDGE MANUFACTURING Sales Information er States Sales is by Cat Acente Product d Rag Mid-Site Hand 40 16.000 1552 19.966 10.550 10.10 94954 65.500 15100 Special 3.0 276200 100250 5959 20536 SHOR,762 S544 6,490 9,935 SIR,744 Number of Units Sold Number of Units m idered Number of Unit Dyed Sale Volume Reve Number of Order Received Number of Shanes Made Number of invoices Sent Accounts with Balance 60 Days 117406 29,194 12.128 SUR024 SI 541 4737 42793 SOS 6105 6501 TABLE 2 BLUE RIDGE MANUFACTURING Unit Cost Information Line Direct Manufacturing Costs Per Unit Unit Quantity Price Material Labor Overhead Towels 017 $119 103 020 Regal Mid-Sie Hand Special 54,400 65,500 151.800 4.500 $160 3.20 2.55 4.00 0.13 50 60 0.50 0:39 0.67 00 0 29 Line Direct Costs of Customizing Per Unit Quantity Cast Material Labor Cheb 30000 30000 Dy Ery 552.400 42298 41. - 11 0 30072 01 00000 1100 12720 .0006 0.1750 D abwe R19.00 (schung reco verage par le Card Reading The Mew-Hill Companies in 2008 0 4 76% ..Sprint X 2:54 PM Blue Ridge Mfg.pdf TABLE 3 BLUE RIDGE MANUFACTURING Selling and Administrative Conad Activities Costs Incurred in Each Function (Shipping, Sales, Marketing Directly Asigned Tes Te Sales Marketing A rtis $120000 17000 170 .00 56100SIMO Selling 15000 1500 17500 0 3:23.000 2.32.500 3135.29 $29.2 Each function is used for the following Activities Percentage of Sailing rod Administrative Activities Shipping Entering Purchase Orders Commi Shipping Activities Invoicing Cost to Make Sales Calle Checking Credit Sample Catalog Info Special Handling charges Distribution Management Marketing by Customer Type Advertising Promotion Marketing Administrative Office Support LiFe Now ,100 of the GAA directly . This the b i g city Blocher, Stout, Cokins, Cher: Cost Management de The Moww Hill Companies, Ine 2008 .. Sprint 04 76% 2:54 PM Blue Ridge Mfg.pdf 5 of 5 TABLE4 BLUE RIDGE MANUFACTURING Activities and Cost drivers Cost Drivers for Allocating costs of Activities to Customer Groups (Large, Medium, Small) Activity Entering Purchase Orders Commissions Shipping Activities Invoicing Cost to Make Sales Calls Checking Credit Samples, Catalog Info Special Handling Charges Distribution Management Marketing, by Customer Type Advertising Promotion Marketing Administrative Office Support Licenses, Fees Cost Driver Number of Orders Sales Dollars with Medium Customers Number of Shipments Number of Invoices Sales Dollars with Large Customers Percent Accounts >60 Days Sales Dollars Management Estimate Sales Dollars Sales Dollars Management Estimate? Number of Units Sold Number of Units Sold' Sales Dollars with Medium Customers to to all customers all sized customer 79 20% to medium-se come 125% to medium-se cu Excluding Specials Excluding Specials Cases and Readings The Moraw-Hill Companies, Inc 2008