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    Case Study On Giberson Glass Studio

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    Chandan Pahelwani
    Giberson Glass Studio is facing financial difficulties due to lack of proper bookkeeping and pricing strategy. An analysis found high operating costs, annual losses, and deteriorating financial position. Options proposed include maintaining accounts and batch-wise costing to set prices ensuring minimum profit per batch. Increasing materials per batch would raise costs but maintain overall profit levels. Implementing these changes along with contingency plans could help stabilize Giberson's finances.

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    Case Study On Giberson Glass Studio

    Uploaded by

    Chandan Pahelwani
    2K views16 pages
    Giberson Glass Studio is facing financial difficulties due to lack of proper bookkeeping and pricing strategy. An analysis found high operating costs, annual losses, and deteriorating financial position. Options proposed include maintaining accounts and batch-wise costing to set prices ensuring minimum profit per batch. Increasing materials per batch would raise costs but maintain overall profit levels. Implementing these changes along with contingency plans could help stabilize Giberson's finances.

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    Giberson is well known in making different types of glasses.

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    Case Study on Giberson Glass Studio

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    Giberson Glass Studio is facing financial difficulties due to lack of proper bookkeeping and pricing strategy. An analysis found high operating costs, annual losses, and deteriorating financial position. Options proposed include maintaining accounts and batch-wise costing to set prices ensuring minimum profit per batch. Increasing materials per batch would raise costs but maintain overall profit levels. Implementing these changes along with contingency plans could help stabilize Giberson's finances.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    2K views16 pages

    Case Study On Giberson Glass Studio

    Uploaded by

    Chandan Pahelwani
    Giberson Glass Studio is facing financial difficulties due to lack of proper bookkeeping and pricing strategy. An analysis found high operating costs, annual losses, and deteriorating financial position. Options proposed include maintaining accounts and batch-wise costing to set prices ensuring minimum profit per batch. Increasing materials per batch would raise costs but maintain overall profit levels. Implementing these changes along with contingency plans could help stabilize Giberson's finances.

    Copyright:

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    Download as PPTX, PDF, TXT or read online from Scribd
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    You are on page 1of 16

    PRESENTED BY:- GROUP NO.

    A5

    Chandan Pahelwani (11047) Himani Parihar (11049) Nikita Bali (11004) Sonia Dadlani (10022) Sunny Bhuva (11010)

    Presented to:Prof. Deepa

    Mishra

    GIST OF THE CASE

    Giberson is well known in making different types of glasses. Felicia coates,an MBA student visiting gibersons glass studio. She shadows upon financial statement of gibersons which were previously taken care by Mrs.giberson which was neglected after their divorce.

    CONT..

    The main key concern point is that Giberson has no pricing strategy for the production. His financial position is deteriorating.

    PROBLEM

    Book keeping Need of additional resources . No pricing strategy. Rapid deterioration of financial position.

    SWOT ANALYSIS
    Qualit y Sales Orders
    Strength
    Weakness

    Extra cost(labour) Operating cost Need of additional financing Life span of facilities

    Opportunity

    Threats

    Trade shows Information al technology

    Environmen taIssues Loosing customers

    CRITERIA

    Batch wise cost Production time Weekly production

    OPTIONS

    To maintain batch wise profit. Maintenance of accounts.

    OPERATING COST
    Item
    Office Supplies Hand Tools/Manufacturing Supplies P/T Labor($5/hr) Other Operating Costs Truck Furnace (GAS) Cost per month $ 25 $ 150 $ 100 $ 640 $ 205 $ 1,000

    Months
    10 10 10 12 12 10

    Operating Costs $ 250 $ 1,500 $ 1000 $ 7,680 $ 2,460 $10,000

    Depreciation on Furnace (2 Years)


    Depreciation on Equipment (8 Years) Depreciation on Truck (5 Years) Depreciation on Gas Tanks (8 Years) Salary TOTAL $

    $ 208
    $ 31

    12
    12 12 12 12 $ $

    $ 2,500
    $ 375

    $ 142 $ 4 2,083

    $ 1,700 $ 50 25,000 52,515

    TOTAL ANNUAL REVENUE


    Category Pattern Glass Paperweights Wrapped Tumblers Vases Unit Price $9 $15 $8 $25 #Units 760 400 1280 320 Sales $6,840 $6,000 $10,240 $8,000

    Total Annual Revenue

    $31,080

    Annual Loss
    Revenue

    COGS (materials)

    Operating Expense $52,515

    = =

    Net Loss

    $31,080

    $857

    - 22,292

    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.

    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
    Cost\Batch Total work Total Cost done in week

    Old
    New

    21.42
    25.35

    40 weeks
    40 weeks

    856.8
    1014

    DECISION

    To prepare the books of accounts. To evaluate cost as per batch because they are doing batch wise costing.

    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.

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