Sunday, May 26, 2019

Giberson’s Glass Studio

Gibersons Glass studio apartment Comparison of the Past and Recommendations for the Future Gibersons Glass Studio Income Statement For the Year Ending lofty 31, 2007 Revenues gross sales $ 31,080 radical Revenue $31,080 Expenses Materials $ 857 Gas 9,200 direct Expenses 10,210 Depreciation 4,625 Interest 460 nitty-gritty Expenses 25,352 elucidate Income 5,728 Executive Summary This report is to provide an evaluation of the current monetary position and prospective profitability of Gibersons Glass Studio.The calculations used and information are presented in the documents following and outlining all(prenominal) recommendation. We find the company to be in positive financial standing, but with large areas of weakness that give require further investigation and action by management. We will present the following recommendations * readjust price Structure * Use of Part Time Labor * Time Management Plan * Demonstration projects * Product Line intricacy Recommendation 1-Reset Pr icing Structure Assumptions * No other changes (i. e. batch size, production size, labor, etc. ) * Increase in crystallize Income is preferred.Price per Item Calculations Batch Price-$21. 43 Salary per Working Week-$625. 00 Total Costs per Week-$646. 43 Produced Pounds-39. 3 lbs. Costs per item Patterned Glass-$8. 22 each Paperweights-$14. 80 each confined Tumblers-$8. 22 each Vases-$9. 87 each We suggest a 50% mark-up from the total cost of each item. Gibersons Glass Studio intercommunicate Income Statement-Recommendation 1 For the Year Ending August 31, 20XX Revenues sales $ 40,520 Total Revenue $ 40,520 Expenses Materials $ 857 Gas9,200 in operation(p) Expenses 10,210 Depreciation4,625 Interest 460 Total Expenses 25,352Net Income $ 15,168 Recommendation 2-Use Part Time Labor Assumptions * Interested in increasing efficiency. * Productions tasks are completed by Mr. Giberson only. * $5/hour meets or exceeds Minimum Wage requirements. Part-Time workers will be completing cold time production activities, such as grinding, sanding, and polishing. They will also be packing and shipping, cleaning, clerical duties, and serving customers in store front. Using part-time labor will yield for increased efficiency and leave products to be created and finished simultaneously, which allows for more production during each day.We suggest adding two part-time employees at $5/hour. Employee no. 1- Grinding, sanding and polishing 30 hours per week x ($5. 00 per hour) = $150 per week Employee no. 2- Clerical work, customer service, cleaning 30 hours per week x ($5. 00 per hour) = $150 per week Gibersons Glass Studio intercommunicate Income Statement-Recommendation 1 & 2 For the Year Ending August 31, 20XX Revenues Sales $ 40,520 Total Revenue $ 40,520 Expenses Materials $ 857 Additional Labor 12,000 Gas 9,200 Operating Expenses 10,210Depreciation 4,625 Interest 460 Total Expenses 37,352 Net Income $ 3,168 Gibersons Glass Studio Projected Income Statement-Recommendatio n 2 For the Year Ending August 31, 20XX Revenues Sales$ 31,080 Total Revenue $ 31,080 Expenses Materials$ 857 Additional Labor 12,000 Gas 9,200 Operating Expenses 10,210 Depreciation 4,625 Interest 460 Total Expenses 37,352 Net Loss ($6,272) Recommendation 3-Time Management Plan Assumptions * Interested in increasing profitability and efficiency. Increase in Net Income is preferred. * Recommendation 2 is accepted. Based on the recommendations made during the time management plan, we would like to increase the number of pieces call forthd, ultimately increasing profitability and reducing waste. higher(prenominal) production would allow your backlog to catch up and allow for made-to-order products to be considered and produced. Time Management will help you be more informed of your productivity, keep you on task, and help you become the most productive that you can be. Time is money, as it relates to production. Gibersons Plan of Weekly ProductionDay of the Week Time occlusive Tas k Description Production Time Amount of Production Sunday 8 am 5 pm Charging Melting Material for Batch N/A N/A Monday 8 am 5 pm Fining Process to allow air bubbles to escape N/A N/A Tuesday-Saturday 8 am 10 am Lighting the Glory Hole Procedure to depress daily production N/A N/A 10 am 11 am Heating Ovens Turning on Annealing Ovens N/A N/A 11 am- 12 midday Blowing Paperweights 15 legal proceeding each 4 per day/20 per week 12 noontide 1 pm Blowing Vases 25 minutes each 2 per day/10 per week 1 pm- 2 pm Lunch Break N/A N/A N/A 2 pm -4 pm Blowing Glasses 15 minutes each 8 per day/40 per week 4 pm 6 pm Blowing Wrapped Tumblers 15 minutes each 8 per day/40 per week Gibersons Glass Studio Projected Income Statement-Recommendation 1, 2, & 3 For the Year Ending August 31, 20XX Revenues Sales$ 57,920 Total Revenue $ 57,920 Expenses Materials$ 857 Additional Labor 12,000 Gas 9,200 Operating Expenses 10,210 Depreciation 4,625 Interest 460 Total Expenses 37,352 Net Income $20,568 Gibersons Glass Studio Projected Income Statement-Recommendation 2 & 3 For the Year Ending August 31, 20XX Revenues Sales$ 43,920 Total Revenue $ 43,920 Expenses Materials$ 857 Additional Labor 12,000 Gas 9,200 Operating Expenses 10,210 Depreciation 4,625 Interest 460 Total Expenses 37,352 Net Income$ 6,568 Recommendation 4- Demonstration Shows Assumptions * Recommendation 2 and 3 are accepted. * Pricing remains the same structure, even though it costs less to produce each item. Room for 10 people maximum, with average of 7 people attending at each time slot. Based on the recommendations made below the time management plan, we would like to increase the number of pieces produced, while allowing time with customers on a small group basis to meet desires of customers and owner. Demonstration shows could outpouring $2 per person per showing, allowing for an additional stream of income, beyond glass products. Each show would be 30 minutes long, allowing for show of making product, di scussion, and question and dissolve time. Gibersons Plan of Weekly ProductionDay of the Week Time Period Task Description Production Time Amount of Production Sunday 8 am 5 pm Charging Melting Material for Batch N/A N/A Monday 8 am 5 pm Fining Process to allow air bubbles to escape N/A N/A Tuesday-Friday 8 am 10 am Lighting the Glory Hole Procedure to begin daily production N/A N/A 10 am 11 am Heating Ovens Turning on Annealing Ovens N/A N/A 11 am- 12 noon Blowing Paperweights 15 minutes each 4 per day/16 per week 12 noon 1 pm Blowing Vases 25 minutes each 2 per day/8 per week 1 pm- 2 pm Lunch Break N/A N/A N/A 2 pm -4 pm Blowing Glasses 15 minutes each 8 per day/32 per week 4 pm 6 pm Blowing Wrapped Tumblers 15 minutes each 8 per day/32 per week Saturday 9 am 10 am Heating Ovens Turning on Annealing Ovens N/A N/A 10 am -11 am Shows Paperweights 15 minutes each 2 per day 11 am 12 noon Shows Vases 25 minutes each 2 per day 12 noon 1 pm Lunch Break N/A N/A N/A 1 pm 2 pm Shows Glasses 15 minutes 2 per day 2 pm 3 pm Shows Wrapped Tumblers 15 minutes 2 per dayGibersons Glass Studio Projected Income Statement-Recommendation 1, 2, 3 & 4 For the Year Ending August 31, 20XX Revenues Sales$ 43,920 Show Revenue 4,480 Total Revenue $ 62,400 Expenses Materials$ 857 Additional Labor 12,000 Gas 9,200 Operating Expenses 10,210 Depreciation 4,625 Interest 460 Total Expenses 37,352 Net Income$25,048 Gibersons Glass Studio Projected Income Statement-Recommendation 2 & 3 For the Year Ending August 31, 20XXRevenues Sales$ 43,920 Show Revenue 4,408 Total Revenue $ 48,400 Expenses Materials$ 857 Additional Labor 12,000 Gas 9,200 Operating Expenses 10,210 Depreciation 4,625 Interest 460 Total Expenses 37,352 Net Income $ 11,048 Recommendation 5- Product Line Expansion Assumptions * Interested in adding new and different products. * Increase in Net Income is preferred. * Interested in using massive parts of weekly batch that is ordinarily wasted .

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