# Essay Danshui Plant No.2 Case Study

952 Words Oct 9th, 2013 4 Pages
Danshui Plant No.2
Case Study

Yuli Tang
Rui Zhang
Due Date: April 9, 2013

1. As we can see from the Exhibit 1, 176,087 Apple iPhone 4’s would have to have been completed for Danshui Plant No.2 to break even.
2. The total expected cost per unit was \$205.7 per unit and the actual cost per unit was \$211.93 per unit. See Exhibit 2.
3 & 4. The data is showing in the Exhibit 3 & 4.
5. From the data of question 3, the variance of revenue is favorable because Apple increased price of flash memory by \$2. However the company didn’t gain profits from the revenue due to the increased price of flash memory provided by Samsung. The variance of flash memory is unfavorable because of two reasons: first reason is the price of each unit
Dollars/ Units)
Exhibit 1: Revenue | 41,240/200=\$206.2 per unit | Variable Costs | 187.89+13.11+1.06=\$202.06 per unit | Contribution Margin | 206.2−202.06=\$4.14 per unit | Fixed cost | \$729,000 per month | Break-even | 729,000/4.14=176,087 units |

Exhibit 2:
Total Expected Cost per unit= 41,140,000/200,000=\$205.7 per unit
Actual Cost per unit= 38,148,000/180,000=\$211.93 per unit
Exhibit 3:
Exhibit 4:
4.1
Actual Price: 5,249,000/181,000=\$29
Standard Price: \$27
Actual Quantity: 181,000 units
Standard Quantity: 180,000 units
Price Variances for Flash Memories= (Actual Price – Standard Price) × Actual Quantity =

## Related Documents

• ###### Essay Danshui Plant No. 2

the Danshui Plant No. 2 to assemble the new iPhones. Danshui Plant No.2, a contract manufacturer in southern China that assembles electronic products for companies wishing to save on labor costs, received a one-year contract starting on June 1, 2010 with the Apple Corporation to assemble 2.4 million iPhone 4s. In the first three months of the contract it became obvious that the plant was unable to assemble the expected 200,000 iPhones per month and was operating at a loss. Although the plant is…

Words: 2021 - Pages: 9
• ###### Essay on Case Study 2

CASE STUDY 2 COMMUNITY GENERAL HOSPITAL I. INTRODUCTION Community General Hospital started in 1914 as Whittaker Memorial Hospital. A man by the name of Dr. Noland Wright was appointed as a manager at that time to review the hospital’s financial records. It turns out that Dr. Wright was trained only in the medical field not business. Unfortunately, he was the main cause for poor financial management at Community General Hospital. By 1970, the hospital had suffered in major losses and debts…

Words: 1152 - Pages: 5
• ###### Essay Sem 2 Case Study 2

HBR Case Study BY JOHN HUMPHREYS, ZAFAR U. AHMED, AND MILDRED PRYOR World-Class Bull Inspired sales ploy or ethical breach? be kidding me, Sam,” Jeremy sputtered. “Chris brought in the single biggest piece of business we’ve won here in more than two years. He’s our top performer! He broke that logjam with Armadillo! He was absolutely brilliant!” From the window of his 10th-ﬂoor office at Specialty Fleet Services, sales vice president Jeremy Silva spied two of the bright yellow repair trucks of Armadillo…

Words: 2908 - Pages: 12
• ###### Case Study 2 Essay

Case Study 2: Team Effectiveness? Colin and Raouf had been having one of their typical sidebar conversations during the meeting when an obviously irritated Henri looked at Colin. "In my 20 years of experience, I've never seen such a shabby hardware design. A first-year college student could do better," said Henri, raising his voice at Colin. "No wonder we're a month behind schedule. Now we're going to have to spend more time and money on redesign. If you were in over your head, Colin, you should…

Words: 1436 - Pages: 6
• ###### Case Study 2 Essay

Case Study 2 Leti Raduca BUSI-642 Dr. Quatro September 8th, 2013 Case Study 2 What elements, discussed in the case study, are important for someone who works in the field of human resources? Human Resources department it is one of the most important departments when it comes to quality of personnel and their placement inside the company (Maxwell, 2001). In any organization, people are the most challenging resource to manage; therefore Human Resources representatives should be very…

Words: 1015 - Pages: 5
• ###### Essay Danshui Plant No.2

INTRODUCTION DANSHUI Plant No.2 is located in southern China was a contract manufacturer that assembled electronic products for companies wishing to save labor costs. DANSHUI was getting a one-year contract with apple Inc. to assemble 2.4 million iPhones. It was very anxious when in the first three months of the contract, the plant is unable to be assembled as many as the expected and its operating at a loss. The plant has had difficulty hiring enough workers despite raising wages to 35%. In…

Words: 1997 - Pages: 8
• ###### Essay Hrm598 Case Study 2

HRM 598 Case Study: Getting and Using Compensation Information “Compensation is a systematic approach to providing monetary value to employees in exchange for work performed. Compensation may achieve several purposes assisting in recruitment, job performance, and job satisfaction. Compensation is a tool used by management for a variety of purposes…

Words: 2241 - Pages: 9
• ###### Case Study 2 Essay

Case Study 2 Adapting Store Size to the Type of Location Submitted By : Marie Jo Aguzar 87/100 Under what conditions should a large box store retailer like a Best Buy Pursue a small­store strategy? As U.S. chain retailers absorb the lessons of the great recession, many big­box chains have started to shrink average store footprints to reflect the growing importance of multi­channel shopping, adapt to urban settings and recognize the need to optimize investment. I suspect you got th…

Words: 1259 - Pages: 6
• ###### Essay Ac505 Case Study 2

Case Study 2 Springfield Express is a luxury passenger carrier in Texas. All seats are first class, and the following data are available: Number of seats per passenger train car 90 Average load factor (percentage of seats filled) 70% Average full passenger fare \$ 160 Average variable cost per passenger \$ 70 Fixed operating cost per month \$ 3,150,000 Formulae’s: Revenue = Units Sold * Unit price Contribution Margin = Revenue – All Variable Cost Contribution Margin Ratio =…

Words: 917 - Pages: 4
• ###### Essay Marshall’s Processing Plant: a Case Study

Processing Plant: a Case Study Case Analysis 1 Marshall’s Processing Plant: a Case Study Laura Knight I chose the case study from chapter three, Teamwork atMarshall’s Processing Plant (Miller, 2009, p. 57-58). The case study explains that management at the processing plant would like input about getting employees to participate again in the Team Management System. The Team Management System at Marshall’s consists of teams of employees representing their job function within the plant. These…

Words: 1190 - Pages: 5