3. GIST OF THE CASE
Giberson is well known in making different
types of glasses.
Felicia coates,an MBA student visiting
giberson’s glass studio.
She shadows upon financial statement of
giberson’s which were previously taken care
by Mrs.giberson which was neglected after
their divorce.
4. CONT…..
The main key concern point is that Giberson
has no pricing strategy for the production.
His financial position is deteriorating.
5. PROBLEM
Book keeping
Need of additional resources .
No pricing strategy.
Rapid deterioration of financial position.
6. SWOT ANALYSIS
• Qualit • Extra
y cost(labour)
• Sales • Operating cost
• Orders • Need of
additional
financing
Strength Weakness • Life span of
facilities
Opportunity Threats
• Trade • Environmen
shows taIssues
• Information • Loosing
al customers
technology
7. CRITERIA
Batch wise cost
Production time
Weekly production
8. OPTIONS
To maintain batch wise profit.
Maintenance of accounts.
11. Annual Loss
COGS
Revenue - (materials) - Operating
Expense = Net Loss
$31,080 - $857 - $52,515 = - 22,292
12. 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.
13. 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
CostBatch Total work Total Cost
done in
week
Old 21.42 40 weeks 856.8
New 25.35 40 weeks 1014
14. DECISION
To prepare the books of accounts.
To evaluate cost as per batch because they
are doing batch wise costing.
15. 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.