Wriston Manufacturing We identified seven factors contributing to the variance in overhead costs from plant to plant. However‚ in order to best understand how these factors contribute to inter-plant variance‚ it is helpful to first take note of the individual components of total overhead. As noted in the case‚ fixed overhead includes depreciation‚ utilities‚ salaries‚ and fringe benefit costs of employees‚ whereas variable costs consist of first-line supervisors’ wages‚ costs of set-up labor‚ scrap
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To: Richard Sullivan From: im26412 Subject: Proposal for Detroit Plant Date: May 26th‚ 2012 Background and Issues Detroit Plant‚ serves as the first plant of HED division within Wriston Group‚ which almost all division products could trace their roots from‚ cannot achieve an acceptable level of profitability for years even we raise the prices or cut wages. The morale of Detroit is poor and it has been plagued by problems such as absenteeism and high turnover rate. Additionally there is coming
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Wriston Manufacturing S. Chopra/Operations/Strategy 1 Wriston Manufacturing Burden Rates (total overhead cost / direct labor cost) 7 6 5 4 3 2 1 0 Sanduski Detroit Lima Lebanon Saginaw Essex Tiffin Freemont Tiffin Freemont Maysville Free capacity and Throughput 160 140 120 100 80 60 40 20 0 Sanduski S. Chopra/Operations/Strategy Detroit Lima Lebanon Saginaw Essex Maysville 2 Wriston Manufacturing Corp: OH Burden rates: Economies of Scale? Sales vs. burden 7 Detroit (20
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Artem Bolshakov Alexander Rubinchik Matan Kurman Wriston Manufacturing: Redistribution vs. Factory Termination vs. New Plant Recommendation: The Detroit plant is an inefficient factory and ought to be closed as soon as possible. Products should be transferred to other plants for benefits in both operational and financial gain. Assessment of Option 1: Close the Plant (Transfer Products to Other Plants) Financial Analysis Selling the plant would cause immediate cash inflow of $4‚000‚000
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EN-111 29 September 2014 Detroit Detroit Michigan is the largest example of a boomtown to date in America. Detroit was once a front runner in very respectable categories such as per capita income and automotive production‚ and at one time was one of the greatest cities in our country. The city took a turn for the worst when Japanese automakers figured out how to make a better car in cheaper fashion‚ and Detroit has been paying the price ever since. The city of Detroit in its heyday was a metropolis
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assumptions. Item Assumption Basis The capacity of the plant is 40‚000 and to be conservative we have taken the 1984 level that is Sales in tons 38‚000 below capacity‚ as continuous for the remaining life of the plant. The five-‐year average in price growth is 17%‚ however the
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Second Chance through Destruction “The 1967 Detroit riot marked a point in U.S. history at which racial tensions between African Americans and whites reached deadly proportions” (Greene & Gabbidon 195-196). Riots in Detroit have occurred before over issues such as race‚ economics‚ and justice. The first major riot in Detroit was in March 1863‚ caused by a trial of an African American man for rape‚ and was powered by the local press. After that‚ Detroit tried to avoid major civil violence for a long
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Detroit‚ once the New York City of its time‚ nick named the “Motor City” as it contained one of the leading car manufacturing centers of the automobile industry. As a metropolis for the first half of the twentieth century‚ Post World War II‚ Detroit became an economic fortress and focal point in American History. Detroit’s economic stronghold placed the city in a position that was once beneficial. From the surging employment opportunities perpetuated by the booming automotive market to the development
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Crime in Detroit For many years Detroit‚ Michigan has been known as the murder capital of the world. Stats show that in 2012 Detroit had the highest rate of violent crimes over any other city in the United States. Crime around the city is not only committed by the residents but also by local police officials and government officials. These are the people that took a vow to serve and protect us. But we have to protect ourselves from them. There has been crimes of racism‚ take for instance in 1992
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The City of Detroit bankruptcy is a historical event since the city of Detroit is one of the largest cities ever filed for bankruptcy. However‚ the court trial will decide after considering all the facts and testimonials‚ if City of Detroit will qualify for bankruptcy. City of Detroit has filed for bankruptcy mainly because of financial factors such as expenditures were higher than revenues‚ the high level of debts and bad management. In the audit report issued for the 2012 there were many qualified
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