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126861905 Baldwin Essay

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Baldwin Bicycles Case
Management Accounting
Part 1 : Relevant Cost of Manufacturing Challenger bicycle
Particulars
Material
Labour Cost
Overheads
Total Variable cost of manufacturing

Amount in $
$
39.80
$
19.60
$
9.80
$
69.20

Sellling price per bicycle
Contribution per bicycle

$
$

Total number of Challenger bikes to be sold
Total Contribution from Challenger bikes

25,000
$ 577,250.00

One time cost of design
Net increase in profit from Challenger bikes

$
5,000.00
$ 572,250.00

92.29
23.09

Assumption : Current labor capicty meet the current demand and extra labor would be required to produce additional un One Time Cost will only be incurred in first year

to produce additional unit

Baldwin Bicycles Case
Management Accounting
Part 2: Relevant Cost of Carrying working capital investment on per bicycle basis a Total No. of Challenger bicycle unit expected to be sold during the year

25000

b Additional working capital investment required

c

Average Inventory
Particulars

Period
(in months)

Material
Work in progress
Finished goods
Warehouse inventory
Total Inventory Investment

2
1000
500
2

Receivables
1
Total Additional Investment in working capital...

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Keywords

/bike 0.30 0.50 0.70 000 000.00 031.03 045 1 1.00 10 1000 100000 10872000 110.05 110.0505 110.050511 125 126861905 127 127667.7 129 129947.9 131721.3 134.66 14.7 14.70 16 1629.8 16298 163 163698.7 165 165833.3 18.00 189 1896.37 189637 19.6 19.60 1982 2 23.09 23.50 2307250 24.5 25 250.00 25000 266.67 2716.333 278 283 288 288333.3 29.31615 29.32 298.00 3 3.00 30 3000 329.04 32930.33 330151.5 333.33 34 34134.66 34600 36 36031.03 38.70 3802.867 39.80 40 43.315967 43.32 432.67 442302.099 5 500 500.00 5000 54 54.50 543 5432.667 543266.7 54500 572 577 577250 6.55 600.00 603.40 629.80 636.99 66.73 66.7345436 667.67 69.20 698.69 7 716.33 732 732903.7 75 788.00 791.00 8 802.87 8045000 81.43 81.4345436 83.90 833.33 872 896.37 9.8 9.80 903.65 92.29 947.90 97 97000 97788 98 98791 account ad addit alloc amount annual annum asset assumpt averag b baldwin base basi bicycl bike bike/year breakag buy c capac capicti capit carri case challeng chang charg cog cogs/bike comput contrbut contribut cost current custom day deal demand design direct dollar due effect equip eros even expect extra finish first fix four fron full fund good gross handl hi hi-valu idl increas increment incur insur inventori invest keep labor laborand labour line loss lost lower maintain manag manufactur maonth margin materi meet million model month net number obsolesc one overhead part particular payment per period pilferag plant pretax price price/bike produc product profit progress project properti qualiti receiv reciev record region regular relev requir return revenu revenue/bike run sale sales/year sell selll sold state store take tax time titl top total transferr un unit unutil util valu variabl volum wareh warehous wholesal without work would year