Case: Hilton Manufacturing Company

1. Mr. Hilton stated that he thought result 103 should be dropped. In reviewing the statement for the period of January 1, 2004 to June 30, 2004, this idea is not supported. Even though reaping 103 continued to be unprofitable in 2004, Hilton Manufacturing association did gain a profit of $158,000 for the archetypal one-half of the category by keeping it in crossingion. By keeping carrefour 103 in production, Hilton Manufacturing Company was able to spread out its pertinacious cost over three products instead of just two. Furthermore, dropping product 103 or any of the products for that matter would not subscribe to ineluctably translated into increased sales for the different two products because the Hilton Manufacturing Companys securities industry appropriate remained consistent year over year. 2. Mr. Weston forecasted that if Hilton Manufacturing Company held its scathe on product 101 at $9.41 per cwt. during the first half cardinal months of 2005, its uni t sales would be approximately 750,000 cwt. Additionally, he scuff that if the price was dropped to $8.64 per cwt., the sales volume would increase to 1,000,000 cwt.

If all other expenses were billed at the same rate with the exception of a 5 percent increase in materials and supplies and a 7 percent increase in light and heat, greater earnings should have been realized for product 101 at a price of $8.64 than the company would have seen for the product at a price of $9.41 per cwt. 3. At first glance, it looks as though product 101 is Hilton Manufacturing Companys near profitable product. But, in comparing the electronic network profit margins for all three products in 2003 and th e first half of 2004 (combined net profit ma! rgins: 101 = 2.04%, 102 = 5.11%, 103 = -12.11%), product 102 appears to be the most profitable product in the... If you want to repair a full essay, order it on our website: OrderEssay.net

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