Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

Continue or shut down decision management accounting

26/04/2021 Client: muhammad11 Deadline: 2 Day

CASE 12–30 Ethics and the Manager; Shut Down or Continue Operations [LO12–2] Haley Romeros had just been appointed vice president of the Rocky Mountain Region of the Bank Services Corporation (BSC). The company provides check processing services for small banks. The banks send checks presented for deposit or payment to BSC, which records the data on each check in a computerized database. BSC then sends the data electronically to the nearest Federal Reserve Bank check-clearing center where the appropriate transfers of funds are made between banks. The Rocky Mountain Region has three check processing centers, which are located in Billings, Montana; Great Falls, Montana; and Clayton, Idaho. Prior to her promotion to vice president, Ms. Romeros had been the manager of a check processing center in New Jersey. Immediately after assuming her new position, Ms. Romeros requested a complete financial report for the just-ended fiscal year from the region’s controller, John Littlebear. Ms. Romeros specified that the financial report should follow the standardized format required by corporate headquarters for all regional performance reports. That report follows: d Bank Services Corporation (BSC) Rocky Mountain Region Financial Performance Check Processing Centers Total Billings Great Falls Clayton $50,000,000 $20,000,000 $18,000,000 $12,000,000 Sales..... Operating expenses: Direct labor..... Variable overhead..... Equipment depreciation..... Facility expense..... Local administrative expense*..... 32,000,000 12,500,000 850,000 350,000 3,900,000 1,300,000 2,800,000 900,000 450,000 140,000 11,000,000 310,000 1,400,000 800,000 160,000 8,500,000 190,000 1,200,000 1,100,000 150,000 Regional administrative expense†..... 1,500,000 600,000 540,000 360,000 Corporate administrative expense‡..... 4,750,000 1,900,000 1,710,000 1,140,000 Total operating expense..... 46,250,000 17,690,000 15,920,000 12,640,000 Net operating income (loss)..... $ 3,750,000 $ 2,310,000 $ 2,080,000 $ (640,000) Upon seeing this report, Ms. Romeros summoned John Littlebear for an explanation. Romeros: What’s the story on Clayton? It didn’t have a loss the previous year did it? Littlebear: No, the Clayton facility has had a nice profit every year since it was opened six years ago, but Clayton lost a big contract this year. Romeros: Why? Littlebear: One of our national competitors entered the local market and bid very aggressively on the contract. We couldn’t afford to meet the bid. Clayton’s costs—particularly their facility expenses—are just too high. When Clayton lost the contract, we had to lay off a lot of employees, but we could not reduce the fixed costs of the Clayton facility. Romeros: Why is Clayton’s facility expense so high? It’s a smaller facility than either Billings or Great Falls and yet its facility expense is higher. Littlebear: The problem is that we are able to rent suitable facilities very cheaply at Billings and Great Falls. No such facilities were available at Clayton; we had them built. Unfortunately, there were big cost overruns. The contractor we hired was inexperienced at this kind of work and in fact went bankrupt before the project was completed. After hiring another contractor to finish the work, we were way over budget. The large depreciation charges on the facility didn’t matter at first because we didn’t have much competition at the time and could charge premium prices. Romeros: Well we can’t do that anymore. The Clayton facility will obviously have to be shut down. Its business can be shifted to the other two check processing centers in the region. Littlebear: I would advise against that. The $1,200,000 in depreciation at the Clayton facility is misleading. That facility should last indefinitely with proper maintenance. And it has no resale value; there is no other commercial activity around Clayton. Romeros: What about the other costs at Clayton? Page 579 Littlebear: If we shifted Clayton’s business over to the other two processing centers in the region, we wouldn’t save anything on direct labor or variable overhead costs. We might save $90,000 or so in local administrative expense, but we would not save any regional administrative expense and corporate headquarters would still charge us 9.5% of our sales as corporate administrative expense. In addition, we would have to rent more space in Billings and Great Falls in order to handle the work transferred from Clayton; that would probably cost us at least $600,000 a year. And don’t forget that it will cost us something to move the equipment from Clayton to Billings and Great Falls. And the move will disrupt service to customers. Romeros: I understand all of that, but a money-losing processing center on my performance report is completely unacceptable. Littlebear: And if you shut down Clayton, you are going to throw some loyal employees out of work. Romeros: That’s unfortunate, but we have to face hard business realities. Littlebear: And you would have to write off the investment in the facilities at Clayton. Romeros: I can explain a write-off to corporate headquarters; hiring an inexperienced contractor to build the Clayton facility was my predecessor’s mistake.

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Phd Writer
Accounting & Finance Specialist
A Grade Exams
Homework Tutor
George M.
Helping Hand
Writer Writer Name Offer Chat
Phd Writer

ONLINE

Phd Writer

Hello, I an ranked top 10 freelancers in academic and contents writing. I can write and updated your personal statement with great quality and free of plagiarism

$48 Chat With Writer
Accounting & Finance Specialist

ONLINE

Accounting & Finance Specialist

You can award me any time as I am ready to start your project curiously. Waiting for your positive response. Thank you!

$35 Chat With Writer
A Grade Exams

ONLINE

A Grade Exams

Hello, I an ranked top 10 freelancers in academic and contents writing. I can write and updated your personal statement with great quality and free of plagiarism

$28 Chat With Writer
Homework Tutor

ONLINE

Homework Tutor

I have read your project details. I can do this within your deadline.

$31 Chat With Writer
George M.

ONLINE

George M.

I have read your project details. I can do this within your deadline.

$32 Chat With Writer
Helping Hand

ONLINE

Helping Hand

Give me a chance, i will do this with my best efforts

$45 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

Cgs unit of light - Crptographic Attack - Therapeutic careers maze answers chapter 6 - Wk 7 forum 2 - HW - Ethane reacts with bromine in the presence of ultraviolet light - Alam company is a manufacturing firm - Orlando's nursing process theory in nursing practice - Week 6 discussion question - Desmond dube hotel rwanda - Analysis of "Credit Sale Slaves" and "The Planter's Annual Record" - How to calculate paint required for a wall - Sears holdings swot analysis 2018 - 6 strip h method - Navalwarcollege blackboard - Hillcrest kennels and cattery water orton - OPERATIONS MANAGEMENT - Sodium hydroxide hydrochloric acid word equation - Demonstrative adjectives p 332 answers - Egg in a plastic bottle experiment - Non procedural programming language - Chanel official website europe - Bga package pcb design - Which fields tend to attract entrepreneurs the most - Kfc owner in pakistan - Npv crossover rate calculator - Jet stream income - Hilux surf wiring diagram - Mid quarter vs half year - Icd 9 code for drainage from incision - Mr burke is berserk comprehension questions - Psychotherapy - Week 6f orum PERCEPTION - Calculate density with atomic radius and atomic weight - Examples of ads with weasel words - Literacy pre assessment quiz gcu - Reflection - Www sagepub com northouse6e - Hcf bronze plus pdf - Jasper exxon towing jasper tx - 7 14 the electrocomp corporation manufactures - Staffing metric - How to make a cash register out of a shoebox - MBA work 8 - Modern database management 13th edition free - Paper review summary - Cj industries and heavey pumps case study answers - Examples of knowledge acquisition in nursing - Project management exam essay questions and answers pdf - Faraday's electromagnetic lab 1 answers - Nppr mayo county council - 158 tolowa trail lima oh - I've University Project For Desiging Patches - Pick one of the following terms for your research: Whistle-blowing, motivation, decentralization, group norms, or needs. - Child family and community 6th edition pdf download - Chapter 7 payroll project solutions - Rigid in outlook harsh crossword clue - Hls js error networkerror fatal true levelloaderror - Greendale Project ReDux - Ramesh babu barber net worth - What is google's reasoning for collecting your personal information - Aace thyroid ultrasound course - Split ring connector design - Where to buy documentary stamp for prc - Bsbpmg522 assessment 2 answers - Which inequality is true for x 5 - George ritzer globalization a basic text pdf - Windhoek mines ltd of namibia is contemplating - Order 2392850: School Vision 12 slides PowerPoint Presentation - Discussion Question - The blind side inaccuracies - Week-07 Discussion - Song of myself questions and answers - Nh3 ph3 ash3 sbh3 boiling point - On january 1 an underweight college student - Hu2000 week 5 assignment - "implementation" model & "mental" model - St swithuns east grinstead - Project 2 - 4076W9D2 - Control objectives for information and related technology pdf - Cuando tenía gripe mi madre me tomar la temperatura - ENTR150-55678 This assignment will be submitted to Turnitin® - Mat 144 quiz 1 answers - Naive realism anthropology - Grand canyon university rn to bsn - Seismic refraction method ppt - Fedex un 3373 pak - Assignment - Painting hero forge miniatures - The boy named crow characters - Laws and Innovations - Nursing philosophy - Letters that might precede 10001 crossword clue - Formula for aluminum phosphate - Warlow v harrison case summary - Hey - 340 B Discussion - 26 electrons 26 protons - Byron pitts step out on nothing summary