Friday, December 6, 2019
Project Report for Business Decision Making- myassignmenthelp.com
Question: Discuss about theProject Report for Business Decision Making. Answer: Introduction: This report depict about a case in which various tools of excel has been analyzed to identify the total number of units which must be produced by the company to manage the functions and the performance of the company. Purpose of the report: This report has been prepared to analyze the case and make a better decision about the total production units. This report depicts the management of the company that how much units would offer them highest return and through which they could utilize the machine hours at their maximum. Further, this report also assists the management of the company to make better decision. Description of problem: In the given case, ABCD limited is the equipment manufacturing company which manufactures football and basketball. In the given report, the total machine hours available for the company has been given and according to that, company could manufacture the football and basketball. All other given information, such as labour hour, selling price etc has been given. In the given case, net profit of the company has been analyzed. Methodology: For analyzing the total production units of the company, excel spreadsheet has been used by the company. For solving the case, the machine hours of the company has been analyzed and further, it has been found that how much time it would take to the company to produce or manufacture the Basketball and Football (Wheelen Hunger, 2017). Through the analysis, it has been found that the 0.5 would be taken for manufacturing the basketball and 0.3 hour would be taken for manufacturing the football (David, 2011). Through the analysis, it has been found that if company would manufacture Basketball or Football, than the total machine hours of the company would be 21000 and thus the rest tile, machine would be idle. So, company is suggested to enhance the level of the Production of basketball and football (Gaughan, 2010). Further, it has been analyzed that the total machine hour would be 39500 hours if the production of basketball and football would be 55000 units and 40000 units. So, company is suggested to manage the level of the Production of basketball and football to 55000 units and 40000 units (Fitzsimmons, Fitzsimmons Bordoloi, 2008). Further, it has also been analyzed that it is quite required for the company to manage the production units according to the machine hours to enhance the level of the production as well as the profits. Through the analysis, it has been found that the total profit of the company would be enhanced when the total production of the company would be enhanced; the only fixed cost of the company is related to its machine hours (Dean Yunus, 2001). So, if the company would manufacture 55000 units of the basketball than the total profit of the company would be $ 3,56,000 and at the same time, if the company would manufacture 40,000 units of the football than the total profit of the company would be $ 2,28,960 (Best, 2009). Working Note: Though, the total machine hour would be 21000 and thus the rest tile, machine would be idle. So, company is suggested to enhance the level of the Production of basketball and football. Thus, the total machine hour would be 39500 hours if the production of basketball and football would be 55000 units and 40000 units. So, company is suggested to manage the level of the Production of basketball and football to 55000 units and 40000 units (Hill, 2008). Statement of profit Basketball Football Per unit 55000 units Per unit 40000 units Selling price $ 14 $ 7,70,000 11 Z440000 Less: Material Cost $ 2 $ 1,10,000 1.25 50000 Labour cost $ 3 $ 1,65,000 1.8 72000 Gross Profit $ 9 $ 4,95,000 $ 8 $ 3,18,000 Tax Cost $ 1,38,600 $ 89,040 Net Profit $ 3,56,400 $ 2,28,960 (Stevenson Hojati, 2007) Thus through this calculations, it has been analyzed that the company must produce 55000 units if basketball and 40000 units of football to enhance the production level as well as utilize the minimum resource at their maximum. Further, it also helps the company to enhance the level of the profit. Through the analysis, it has been found that, if the company would manufacture 55000 units of the basketball than the total profit of the company would be $ 3,56,000 and at the same time, if the company would manufacture 40,000 units of the football than the total profit of the company would be $ 2,28,960 (Wheelen Hunger, 2017). Findings: Through the analysis, it has been found that the company must make a decision about the production through considering the following points: Fixed cost of the company must be considered by the company before evaluating the total production units. Variable cost and contribution per units of cost sheet helps the company to analyze the production units which are quite required for the company to save itself from losses. Sales price of the company is the main figure to analyze the total profit (Applegate, Austin, McFarlan Applegate, 2007). Production unit must be set by the company after analyzing all the related factors, Through the reports, it has been analyzed that the company must produce 55000 units if basketball and 40000 units of football to enhance the production level as well as utilize the minimum resource at their maximum. Company must manufacture the 55000 units of basketball and 40000 units of football to enhance the profits (by Sara Carter Jones-Evans, 2009). Recommendation or conclusion: To conclude, through these calculations, it has been analyzed that the company must produce 55000 units if basketball and 40000 units of football to enhance the production level as well as utilize the minimum resource at their maximum. The main figures which make an impact over the total production units of the company are total machine hours of the company. This report has been expressed about the management of the company that how much units would offer them highest return and through which they could utilize the machine hours at their maximum. Further, this report also assists the management of the company to make better decision. Further, it also helps the company to enhance the level of the profit. Through the analysis, it has been found that, if the company would manufacture 55000 units of the basketball than the total profit of the company would be $ 3,56,000 and at the same time, if the company would manufacture 40,000 units of the football than the total profit of the company would be $ 2,28,960. Lastly, it is suggested to the company to enhance the production level, according to the total capacity and market demand of the products. The machine hours of the company depict about the total production units of the company. further, the production units affect over the total net profit of the company. References: Applegate, L. M., Austin, R. D., McFarlan, F. W., Applegate, L. M. (2007). Corporate information strategy and management: text and cases. Boston: McGraw-Hill/Irwin. Best, R. J. (2009). Market-based management: Strategies for growing customer value and profitability. by Sara Carter, E., Jones-Evans, D. (2009). Enterprise and small business: Principles, practice and policy. Strategic Direction, 25(5). David, F. R. (2011). Strategic management: Concepts and cases. Peaeson/Prentice Hall. Dean, E. Yunus, K. (2001). An overview of strategic alliances. Management Decision, Vol. 39 Iss 3 pp. 205 218. Fitzsimmons, J. A., Fitzsimmons, M. J., Bordoloi, S. (2008). Service management: Operations, strategy, and information technology (p. 4). New York, NY: McGraw-Hill. Gaughan, PA (2010). Mergers, Acquisitions, and Corporate Restructurings. John Wiley Sons. Hill, C. (2008). International business: Competing in the global market place. Strategic Direction, 24(9). Stevenson, W. J., Hojati, M. (2007). Operations management (Vol. 8). Boston: McGraw-Hill/Irwin. Wheelen, T. L., Hunger, J. D. (2011). Concepts in strategic management and business policy. Pearson Education India. Wheelen, T. L., Hunger, J. D. (2017). Strategic management and business policy. pearson.
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