You have been hired to assist the management of Great Bend Office Systems in resolving certain…

QUALITYWRITERS.ORG is the ideal place for homework help. If you are looking for affordable, custom-written, high-quality and non-plagiarized papers, your student life just became easier with us. Click the button below to place your order.


Order a Similar Paper Order a Different Paper

You have been hired to assist the management of Great Bend Office Systems in resolving certain issues. The company has its home office in Montana and leases facilities in Montana, Idaho, and North Dakota, where it produces a high-quality bean bag chair designed for residential use. Great Bend management has provided you a projection of operations for fiscal 2011, the forthcoming year, as follows: The sales price per unit is $100. Due to the marginal results of operations in North Dakota, Great Bend has decided to cease its operations there and sell that factory s machinery and equipment by the end of 2011. Managers expect proceeds from the sale of these assets to exceed their book value by enough to cover termination costs. However, Great Bend would like to continue serving its customers in that area if it is economically feasible. It is considering the following three alternatives: 1. Expand the operations of the Idaho factory by using space that is currently idle. This move would result in the following changes in that factory s operations: Increase over Factory’s Current Operations Sales …………. 50% Fixed costs Factory ……… 20% Administration …… 10% Under this proposal, variable costs would be $32 per unit sold. 2. Enter into a long-term contract with a competitor who will serve that area s customers and will pay Great Bend a royalty of $16 per unit based on an estimate of 30,000 units being sold. 3. Close the North Dakota factory and not e

"Is this question part of your assignment? We can help"

ORDER NOW
Writerbay.net

Got stuck with a writing task? We can help! Use our paper writing service to score better grades and meet your deadlines.

Get 15% discount for your first order


Order a Similar Paper Order a Different Paper
Writerbay.net