Bayview - report

INDEX executive director Summary3 Background3 Recomm leftovering and justifying an becharm comprise abridgment3 New income rumor - plant-wide belt rate6 New income statement - plant-wide overhead rate7 Conclusion9 Appendix A: Income Statements supporting information10 Exhibit A: Sensitivity Analysis - expression block and total theatrical role permissivenesss11 Exhibit B: Sensitivity Analysis - parcel margin and lower limits of end product12 Exhibit C: Sensitivity abbreviation - contribution margin and upper limits of deed13 Exhibit D: Sensitivity analysis - hours of production14 Executive Summary The object of this report is to: *Build upon the results and calculations from our previous Bayview naming and to create a production plan for the company, identifying the optimum production mix; * exercise sensitivity analysis as assume to support forth production plans; and *Produce analysis sufficient to justify our production plan. Executive recommendation : Based on our assessment of costs and overheads, theme 4 recommends that Bayview manufacturing adopt the pursual production mix: * crossing A: 80,000 units *Product B: 41,333 units *Product C: 50,000 units Background To hold back our recommendations, the historic data provided was analysed using solver as an optimizing tool. By providing solver the in operation(p) constraints of the company, it generated the optimal product mix. This analysis is contained in an associated excel spreadsheet (BayviewManufacturing_group4part2.

xls), thus far the key aspects of this document are attached as exhibits A, B, C & D. It is recommended that these exhibits be reviewed prior to re! view of our analysis, as they high spot the underlying assumptions adopted by Group 4. Recommending and justifying an appropriate cost analysis Our recommended levels of production are based upon the sensitivity analysis attached. We have concluded that contribution margins (and therefore profitability) is most subtle to changes in demand for products A and C. This means that changes to the production lend up of these products impact the profitability of Bayview more than... If you want to grasp a full essay, order it on our website: BestEssayCheap.com

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