# Essay about Katy Eh Manufactoring Company

1563 Words Dec 22nd, 2015 7 Pages
Katy EH Manufacturing Company | ASSIGNMENT | Evaluation of Business Plans, Budgeting and Variance Analysis | | Algernon Jones | 05-Dec-15 |

Katy EH Manufacturing Company

INTODUCTION:
This study was conducted to evaluate various business plans of Katy EH Manufacturing Company and their impact on profit before tax, preparation of budget as per selected option and investigation of variances of operating budget of year 2016.

To decide whether product line Grill A be dropped or not by Katy EH we will calculate contribution margin from Grill A. If the contribution margin becomes zero then we will suggest dropping the said product line otherwise not depending on other non-financial factors.

Calculation of
However, the impact on profit before tax is negative by \$ 100,000 (Solution part-e) Answer Part (c)

Contribution of 10,000 Units of Grill C | | Revenue | 10,000 x 80 | \$ 800,000 | Less: Relevant Cost: | | | Direct Material | 10,000 x 7 | 70,000 | Direct Labour | 10,000 x 4 | 40,000 | Supplies | 10,000 x 1 | 10,000 | Indirect Labour | 10,000 x 4 x 50% | 20,000 | Energy | 10,000 x 4 x 50% | 20,000 | Total Relevant Cost | | (160,000) | Contribution Margin | | 640,000 | | | | Contribution of 10,000 Units of Grill A | | Revenue | 10,000 x 150 | \$ 1,500,000 | Less: Relevant Cost: | | | Direct Material | 10000 x 17 | 170,000 | Direct Labour | 10000 x 21 | 210,000 | Supplies | 10000 x 7 | 70,000 | Indirect Labour | 10000 x 10 x 50% | 50,000 | Energy | 10000 x 12 x 50% | 20,000 | | | (520,000) | Contribution Margin | | 980,000 | | | | Contribution Analysis: | | \$ | Increase in contribution by 10,000 units of Grill C | 640,000 | Decrease in contribution of 10,000 units of Grill A | (980,000) | Net Loss in contribution | | (340,000) |

Decision:
This option is not worthwhile because it reduces the contribution by \$

## Related Documents

• ###### Essay Non Medical Problem Of Katy Adams

Non-medical problem of Katy Adams & how it affects health outcomes The non- medical problem of Katy Adams: The availability of child cares in the United States for those who needs it leaves room for improvement. According to (Christ, 2015), suggest that when low-income families receive child care, mothers are more likely to keep doctor’s appointments and decrease their stress level. The cost of child care is having a huge impact on the careers of working parents and people…

Words: 1412 - Pages: 6
• ###### Essay The Kellogg Company : The Company

Introduction The Kellogg Company is without a doubt one of the most recognized food production companies in the world with markets in over 180 countries. Headquartered in Battle Creek, Michigan, this American company is well known for their production of cereal, crackers, cookies, fruit snacks, waffles, chips and other snack related foods. Some of their well-recognized brands include but are not limited to Pringles, Cheez-It, Keebler, Pop Tarts, Rice Krispies, Eggo, Fruit Loops and Frosted…

Words: 1963 - Pages: 8
• ###### Essay Analysis Of Katy Eh Manufacturing Company

Group #3 Katy EH Manufacturing Company Peter Johnson and Lily Brown, owners, of Katy EH Manufacturing Company are in the process of preparing their preliminary budget for the upcoming year. Katy EH manufactures gas grills in three different models (A, B, and C). In comparison to its competitors, Katy EH is a small player in the industry. However, the company is expecting to have a profitable year. Johnson and Brown are reviewing the financial impact of the following scenarios: Drop Grill A; Lower…

Words: 782 - Pages: 4
• ###### Essay on katy pery roar

The song I chose to analyze is “Roar” sung by Katy Perry. Dr. Luke and Bonnie McKee wrote the lyrics. She is a fabulous singer and is only 29 years old. She is an American award-winning singer, songwriter, businesswoman, philanthropist, sex symbol, and actress from Santa Barbara. She is the first female artist to have five number one singles on the U.S. Billboard Hot 100 from one album. "'Roar' is a song about being able to finally speak up for…

Words: 838 - Pages: 4
• ###### Essay Katy Perry : The Pop Star

Katy Perry Katy Perry is a clear example of the quintessential female pop star in contemporary popular music. The common focus of her performances is not often on the artistic contributions of her musical endeavours, but rather on the spectacle or stardom that coincides with her fame as a celebrity. From observing her performance at the 2015 Super Bowl, it is simple to grasp her position in the pop music landscape (D’Addario, 2015). She avoided playing any instruments on stage (although she is…

Words: 775 - Pages: 4
• ###### Essay Conducting An Internal Eh & S Audit

Conducting an internal EH&S audit is an extensive exercise requiring meticulous preparation and constant monitoring to ensure its success. A number of process elements have been identified as possible failures and must therefore being looked at very closely to ensure that this risk is kept to a minimum. Among those, the preparation and planning, distractions, day to day communications are considered essential elements to a successful audit Preparation and planning: Having a proper plan of action…

Words: 721 - Pages: 3
• ###### Riordan Manufactoring Essays

Tuesday, July 30, 2013 SUBJECT: Ratio analysis of Riordan Manufacturing Riordan manufacturing has developed as a producer of plastics as well as foam-based products. Listed below is a quick analysis of the company using liquidity, profitability, and solvency ratios. The analysis is accompanied by vertical and horizontal analysis of the balance sheet and the income statement. This examination gives anyone inquisitive a good picture of the company’s performance…

Words: 736 - Pages: 3
• ###### Eh Isso Ai Essays

bold and radical, he took away the circulation of money, but with the reduction of inflation, the biggest recession in the history of Brazil would start, an increase of unemployment, many companies shut the doors and the production reduced significantly; it had a fall of 26% during April 1989 and April 1990. Companies were required to reduce production, working hours, wages, or layoff of employees. Just in São Paulo, the first six months of 1990, 170,000 jobs have ceased to exist, and it was the worst…

Words: 1270 - Pages: 6
• ###### Essay The Education Teacher : Katy And Her Family

The education teacher, Christine, tried to provide the appropriate education, along with high expectations for learning, but that was not always effective due to no support. She advocated for Katy and her family, but was unsuccessful in that she could not meet the needs of all the children, when two had special needs. Katy’s parents were immense advocates in making sure her needs were met. Katy’s parents knew that she would fit into an inclusive classroom, with an aide; they continued to fight…

Words: 1014 - Pages:
• ###### Essay Earth Without Art Is Just ' Eh

“Earth Without Art is Just ‘Eh’” -author unknown “There is something especially magical about framing these moments of stillness and of absolute attention to the individual amidst this bustling city of millions, a city that never sleeps and never stops.” These are the words which with Maria Popova begins her article Humans of New York: A Vibrant Photographic Census of Diversity and Dignity. The continuation of her article goes in detail about Brandon Stanton, the creator of Humans of New York photography…

Words: 985 - Pages: 4