Professional Documents
Culture Documents
This Study Resource Was: Bill French Case Study
This Study Resource Was: Bill French Case Study
INTRODUCTION
Bill French was a staff accountant in Dou- Products Corporation. He used to report to his
boss Wes Davidson- controller. He has been doing routine types of analytical work. French
requested permission to make a presentation of some break-even data. Dou – Products
Corporation has not been using this types of analysis in its planning procedures. French had
done was to determine the level at which the company must operate in order to break even. As
he put it, the company must be able at least to sell sufficient volume of goods so that it will
cover all the variable cost of producing and selling the goods. Further, it will not make a profit
unless it covers the fixed cost as well the level of operation at which total cost are just covered is
the break-even volume.
POINT OF VIEW:
People involved in the meeting.
m
er as
OBJECTIVE:
To review the product mix if there’s need to change it or retain current strategy.
co
eH w
To determine the level at which the company must operate in order to break-even.
To review and apply the suggestions of other members during the meeting.
o.
rs e
ou urc
PROBLEM:
Whether to alter the existing product mix or not?
Why is the sum of the three volumes (A, B, C) not equal to the 1,100,000 units aggregate
o
AREAS OF CONSIDERATION:
Company Background
ed d
Dou- Products Corporation is a company that has several products to offer however, based on
ar stu
Bill French the company is using single break-even analysis applicable for the operation.
This study source was downloaded by 100000825332512 from CourseHero.com on 08-18-2021 09:19:53 GMT -05:00
https://www.coursehero.com/file/75203775/CASE-STUDY-BILL-FRENCHdocx/
TOWS (Threats/Opportunities/Weaknesses/Strength)
Threats:
There’s a lot of consideration before materializing the break-even analysis of French.
the company cannot gain profit unless it covers fixed cost and total cost.
Opportunities:
With French presentation the fixed cost of the company can be increased making a profit
to the company.
Weaknesses:
m
er as
The company has multiple considerations prior to break-even.
co
eH w
Strength:
o.
rs e
The company’s variable cost is constant in the past year.
ou urc
The company has three products offerings that can be adjusted.
Bill should consider the facts that was been provided by people involved in the meeting.
vi y re
for reevaluation.
Bill can present another strategic plan for the company’s operation to break-even.
Wherein it can be able to break down all information needed for strategy since the
company offers multi-product and each offers different contribution the company is not
ed d
getting equal to 1,100,00. It can an advantage since they can innovate the pricing and
ar stu
adjust break-even.
Company can apply the break-even analysis presented by bill to make sales price
constant and improve company’s profit.
is
CONCLUSION:
Th
The break-even analysis helps to find out which products are performing well and which
are leading to losses. It is also versatile enough to include items like donations, wage increase,
sh
This study source was downloaded by 100000825332512 from CourseHero.com on 08-18-2021 09:19:53 GMT -05:00
https://www.coursehero.com/file/75203775/CASE-STUDY-BILL-FRENCHdocx/
Powered by TCPDF (www.tcpdf.org)