PRESENTED BY:- GROUP NO.

A5

Chandan Pahelwani (11047) Himani Parihar (11049) Nikita Bali (11004) Sonia Dadlani (10022) Sunny Bhuva (11010)

Presented to:Prof. Deepa

Mishra

GIST OF THE CASE

Giberson is well known in making different types of glasses. Felicia coates,an MBA student visiting gibersons glass studio. She shadows upon financial statement of gibersons which were previously taken care by Mrs.giberson which was neglected after their divorce.

CONT..

The main key concern point is that Giberson has no pricing strategy for the production. His financial position is deteriorating.

PROBLEM

Book keeping Need of additional resources . No pricing strategy. Rapid deterioration of financial position.

SWOT ANALYSIS
Qualit y Sales Orders
Strength
Weakness

Extra cost(labour) Operating cost Need of additional financing Life span of facilities

Opportunity

Threats

Trade shows Information al technology

Environmen taIssues Loosing customers

CRITERIA

Batch wise cost Production time Weekly production

OPTIONS

To maintain batch wise profit. Maintenance of accounts.

OPERATING COST
Item
Office Supplies Hand Tools/Manufacturing Supplies P/T Labor($5/hr) Other Operating Costs Truck Furnace (GAS) Cost per month $ 25 $ 150 $ 100 $ 640 $ 205 $ 1,000

Months
10 10 10 12 12 10

Operating Costs $ 250 $ 1,500 $ 1000 $ 7,680 $ 2,460 $10,000

Depreciation on Furnace (2 Years)

Depreciation on Equipment (8 Years) Depreciation on Truck (5 Years) Depreciation on Gas Tanks (8 Years) Salary TOTAL $

$ 208
$ 31

12
12 12 12 12 $ $

$ 2,500
$ 375

$ 142 $ 4 2,083

$ 1,700 $ 50 25,000 52,515

TOTAL ANNUAL REVENUE

Category Pattern Glass Paperweights Wrapped Tumblers Vases Unit Price $9 $15 $8 $25 #Units 760 400 1280 320 Sales $6,840 $6,000 $10,240 $8,000

Total Annual Revenue

$31,080

Annual Loss
Revenue

COGS (materials)

Operating Expense $52,515

= =

Net Loss

$31,080

$857

- 22,292

ACTION PLAN

To find the relevant cost batch wise so that he can gains minimum margin profit. Also he should maintain the books of accounts.

MATERIAL BATCH WISE COST

Cost per batch = 21.42

Total lbs. = 169

If Increase material used to 200 batch then 169 - - - 21.42 200 - - - - ?? = 25.35
Cost\Batch Total work Total Cost done in week

Old
New

21.42
25.35

40 weeks
40 weeks

856.8
1014

DECISION

To prepare the books of accounts. To evaluate cost as per batch because they are doing batch wise costing.

CONTINGENCY PLAN

To increase the cost batch wise so that profit can be easily maintained. Reduce the units in batch and keep the price same so that actual gain can be done.