As far as Im concerned, since the labor has a defined demand for most part, instead of displace the 300 series, focusing efforts on other series to fetch the market shargon in those fas hug drugers is more(prenominal) valuable. The 100 and two hundred series fas tennerers are more profitable prior to smash application.
Besides, Mr. Magers may hire to review the firms meliorate overhead again. General selling and administrative costs micturate part of the overhead, these can be changed through paying gross sales representatives by their amount of sales. This should basically deduct the amount you are paying representatives so that to increase profit and reduce the stiff overhead.
Moreover, as the income statement stated, the annual year depreciation is around $1,359,000, which is a large amount expense that Magers should not ignore. The machinery is depreciated more than 20 years life using straight aura rate. About half represent equipment purchased in the past ten years and half the equipment in use is over ten years old.
Old and inefficient machines will bring overpower the efficiency and quality of the products. Consequently Berkshire machine department managers need to evaluate the old machines and decide to sell the old and idle machines (Cooper, 1992).
Whats more, because the market is captured by price reduction, Mr. Magers should more misgiving about his sales employees. He should reward and compensate them by their performance, so that the employees will have real incentive to shake up the product lines and increase the sales, which is more important.If you want to get a full essay, order it on our website: Ordercustompaper.com
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