Jak and Jill Essay

1021 Words Jul 11th, 2013 5 Pages
CASE ANALYSIS | MUILLER LEHMKHUL GMBH | Group - 6 |

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Team Members:
1. Adithya J R
2. Bharath. S
3, Karthik Dasari
4. Nanjunda Prasad
5. Nitish
6. SNDS Ramanish

Executive Summary :
The largest single manufacture of apparel fasteners in Europe, Mueller Lehmkuhl, started as a shoe accessories manufacturer in 1876 and the subsequent organizational reconstructions, acquired technological superiority, diverse product range made it as one of the four major players in the European fasteners market. ML (Mueller Lehmkuhl) is known for high quality, reliable fasteners and prompt support provided.

ML's strategy of producing the Attaching Machines for the fasteners and catering the service needs in case of breakdown aided in penetrating
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This will help in arriving at a better informed decision.

* Reduction in Sales figure from $ 103 million to $ 96 million – The firm is into production of different kinds of fasteners, hence, only the budgeted revenue from the sales of fasteners were considered. The revenue from selling the manual attaching machines and the lease from the automatic machines was deducted. * Machine Department Expenses (General Overhead):
It was mentioned clearly in the case that the operations of the Machining Department were primarily concerned with the attaching machine production and refitting. Expenses under this head were removed as this activity is not related to the manufacturing of fasteners. One assumption made was, the costs of labor force involved in producing the production equipment of the fasteners is negligible in comparison. * Tooling Department Expense (General Overhead):
As in the case of Machining Expenses, Tooling department Expenses also pertain to activities related to the attaching machine tools. The assumption that the costs of tooling for the Fasteners is negligible with respect to other costs is made as the total expense is comparatively small and may not be worth the effort to allocate the cost separately to fasteners production and attaching machines production . The expense is omitted from the income statement. * Technical Administration:
Exhibit 8 details

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