Baldwin Bicycle Case Study: Strategic Cost Mangement Essay

877 Words Jul 5th, 2012 4 Pages
| Baldwin Bicycle Case Study | Strategic Cost Managment | | Submitted to-Mr. Suneel Maheshwari | |

By-
Sourabh Dhawan-
Nooruddin Hussain
Nimisha Rathi
Tulika Singhal |

1. What is the relevant cost of manufacturing a challenger bike? Present Situation | | | | Total Revenue | | 10872000 | | Units sold | | 98791 | | P.U Price | | 110.0505 | | | | | | | | | | Hi Valu Proposal | | | | Material | 39.8 | | | Labour | 19.6 | | | Variable Overhead | 9.8 | | | Total VC | 69.2 | | | S.P. | 92.29 | | | Contribution | 23.09 | | | | | | | Additional Cont | 577250 | | 577250 | | | | | Loss Of Sales | |
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130500. 4. Can you estimate incremental return on investment for the challenger deal? Sales | | | | Challenger | 2307250 | | | Baldwin | 10674850 | | | | | 12982100 | | Cost Of Sales | | | | Material | | | | Baldwin | 3603550 | | | Challenger | 995000 | 4598550 | | Labour | 2391200 | | | Variable O/H | 1195600 | | | Fixed O/H | 1470000 | | | | | 5056800 | | Cost of sales | | 9655350 | | Gross Margin | |

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