Performance metricsApples & Oranges Inc. is trying to become more efficient in shipping goods. It is experimenting with two new shipping procedure initiatives aimed at achieving thisstrategic objective. The company has provided the following data regarding the two procedures after one month of implementation:Shipping Procedure AShipping Procedure B7217.37.7Number of shipping errorsHours from ordered to shipped -Shipping time (hours from shipped to delivered)Pounds of goods shippedNumber of shipmentsa. Compute the following performance metrics for each program:(1) Average number of shipping errors per shipment, rounded to two decimal places.720,000200Procedure A:error per shipmentProcedure B:error per shipment(2) Hours from ordered to delivered, rounded to one decimal place.hours from ordered to deliveredhours from ordered to deliveredProcedure A:Procedure B:(3) Average pounds of goods per shipment.Procedure A:lbs. of goods per shipmentProcedure B:lbs. of goods per shipment ib. Which program should the company implement moving forward?12020.26.5500,000250

Shipping procedure basically involves all the processes from receiving an order till delivering it…

Answered: a. Compute the following performance…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter14: The Balanced Scorecard And Corporate Social Responsibility

Section: Chapter Questions

Problem 5E

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Apples & Oranges Inc. is trying to become more efficient in shipping goods. It is experimenting with two new shipping procedure initiatives aimed at achieving this strategic objective. The company has provided the following data regarding the two procedures after one month of implementation: Line Item Description Shipping Procedure A Shipping Procedure B Number of shipping errors 144 120 Hours from ordered to shipped 17.3 20.2 Shipping time (hours from shipped to delivered) 6.7 9.5 Pounds of goods shipped 1,520,000 720,000 Number of shipments 400 300 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Open spreadsheet a. Compute the following performance metrics for each…
Performance metrics Apples & Oranges Inc. is trying to become more efficient in shipping goods. It is experimenting with two new shipping procedure initiatives aimed at achieving this strategic objective. The company has provided the following data regarding the two procedures after one month of implementation: Number of shipping errors Hours from ordered to shipped Shipping time (hours from shipped to delivered) Pounds of goods shipped Number of shipments a. Compute the following performance metrics for each program: (1) Average number of shipping errors per shipment, rounded to two decimal places. Procedure A: Procedure B: Procedure A: error per shipment Procedure B: error per shipment (2) Hours from ordered to delivered, rounded to one decimal place. hours from ordered to delivered hours from ordered to delivered (3) Average pounds of goods per shipment. Procedure A: Procedure B: Shipping Procedure A Shipping Procedure B 144 80 17.3 17.2 7.7 8.5 lbs. of goods per shipment lbs. of…
Selecting a Basis for Predicting Shipping Expenses (Requires Computer Spreadsheet*) Cambridge SoundWorks sell portable speakers systems and bluetooth headphones. In an effort to improve the planning and control of shipping expenses, management is trying to determine which of three variables-units shipped, weight shipped, or sales value of units shipped- has the closest relationship with shipping expenses. The following information is available: Weight Sales Value of Shipping Month Units Shipped Shipped (lbs.) Units Shipped Expenses May 10,000 7,500 $350,000 $38,000 June 12,000 8,760 July 15,000 9,200 August 20,000 10,500 432,000 42,000 420,000 50,100 400,000 72,500 September 12,000 7,600 300,000 41,000 October 8,000 6,000 320,000 35,600 Required a. With the aid of a spreadsheet program, determine whether units shipped, weight shipped, or sales value of units shipped has the closest relationship with shipping expenses. Complete the r-squared values between each possible independent…
Apples & Oranges Inc. is trying to become more efficient in shipping goods. It is experimenting with two new shipping procedure initiatives aimed at achieving this strategic objective. The company has provided the following data regarding the two procedures after one month of implementation: Shipping Procedure A Shipping Procedure B Number of shipping errors 105 132 Hours from ordered shipped 16.3 19.2 Shipping time (hours from shipped delivered) 8.7 8.5 Pounds of goods shipped 860,000 797,000 Number of shipments 306 315 a. Compute the following performance metrics for each program: (1) Average number of shipping errors per shipment, rounded to three decimal places. Procedure A: error per shipment Procedure B: error per shipment (2) Hours from ordered to delivered, rounded to one decimal place. Procedure A: hours from ordered to delivered Procedure B: hours from ordered to delivered (3) Average pounds of goods per shipment, rounded to two decimal places. Procedure A: Ibs. of goods per…
Ohio Logistics manages the logistical activities for firms by matching companies that need products shipped with carriers that can provide the best rates and best service for the companies. Ohio Logistics is very concerned that its carriers deliver their customers material on time, so it carefully monitors the percentage of on-time deliveries. The following table contains a list of the carriers used by Ohio Logistics and the corresponding on-time percentages for the current and previous years. a. Sort the carriers in descending order by their current years percentage of on-time deliveries. Which carrier is providing the best service in the current year? Which carrier is providing the worst service in the current year? b. Calculate the change in percentage of on-time deliveries from the previous to the current year for each carrier. Use Excels conditional formatting to highlight the carriers whose on-time percentage decreased from the previous year to the current year. c. Use Excels conditional formatting tool to create data bars for the change in percentage of on-time deliveries from the previous year to the current year for each carrier calculated in part b. d. Which carriers should Ohio Logistics try to use in the future? Why?
Measure Maps Rizzo Goal Inc. produces and sells hockey equipment, often custom made for online orders. The company has the following performance metrics on its balanced scorecard: days from ordered to delivered, number of shipping errors, customer retention rate, and market share. A measure map illustrates that the days from ordered to delivered and the number of shipping errors are both expected to directly affect the customer retention rate, which affects market share. Additional internal analysis finds that: . Every shipping error over three shipping errors per month reduces the customer retention rate by 1.5%. On average, each day above three days from ordered to delivered yields a reduction in the customer retention rate of 1%. Each day before three days from order to delivery yields an increase in the customer retention rate of 1%, on average. Rizzo Goal Inc.'s current customer retention rate is 60%. The company estimates that for every 1% increase or decrease in the customer…
Measure Maps Rizzo Goal Inc. produces and sells hockey equipment, often custom made for online orders. The company has the following performance metrics on its balanced scorecard: days from ordered to delivered, number of shipping errors, customer retention rate, and market share. A measure map illustrates that the days from ordered to delivered and the number of shipping errors are both expected to directly affect the customer retention rate, which affects market share. Additional internal analysis finds that: Every shipping error over 2 shipping errors per month reduces the customer retention rate by 2.5%. On average, each day above 2 days from ordered to delivered yields a reduction in the customer retention rate of 2%. Each day before 2 days from order to delivery yields an increase in the customer retention rate of 2%, on average. Rizzo Goal Inc.’s current customer retention rate is 70%. The company estimates that for every 2% increase or decrease in the customer retention rate,…
Case Study 4: Inventory Management. (II) A regional distributor purchases discontinued appliances from various suppliers and then sells them on demand to retailers in the region. The distributor operates 5 days per week, 52 weeks per year. Only when it is open for business can orders be received. Management wants to reevaluate its current inventory policy, which calls for order quantities of 440 counter-top mixers. The following data are estimated for the mixer: Average daily demand 100 mixers Standard deviation of daily demand 30 mixers Lead time (L) = 3 days Holding Cost (H) = $9.40/order/year Ordering Cost (S) = $35/order Cycle service level = 92% The distributor uses a continuous review (Q) system What order quantity, Q, and reorder point, R, should be used? What is the total annual cost of the system? If on-hand inventory is 40 units, one open order for 440 mixers is pending and no back orders exist, should a new order be placed?
Revise your worksheet to reflect these updated assumptions and then answer the questions that follow. Sales Sale Price 16,400 units 27 Number of Date Beginning March 12 June 5 Units Unit Cost Total Cost 3,500 10.30 $36,050 4,700 10.20 47,940 3,400 10.10 34,340 October 22 8,300 9.90 82,170 Totals 19,900 $200,500 Required: 1. Use your spreadsheet to recalculate the Cost of Goods Sold, Inventory balances, and Gross Profit under each method and enter your results below: (Round your answers to the nearest whole dollar amount.) FIFO LIFO Weighted Average Cost of Goods Sold Ending Inventory Gross Profit
Rizzo Goal Inc. produces and sells hockey equipment, often custom made for online orders. The company has the following performance metrics on its balanced scorecard: days from ordered to delivered, number of shipping errors, customer retention rate, and market share. A measure map illustrates that the days from ordered to delivered and the number of shipping errors are both expected to directly affect the customer retention rate, which affects market share. Additional internal analysis finds that: Every shipping error over three shipping errors per month reduces the customer retention rate by 1.5%. On average, each day above three days from ordered to delivered yields a reduction in the customer retention rate of 1%. Each day before three days from order to delivery yields an increase in the customer retention rate of 1%, on average. Rizzo Goal Inc.s current customer retention rate is 60%. The company estimates that for every 1% increase or decrease in the customer retention rate, market share changes 0.5% in the same direction. Rizzo Goal Inc.s current market share is 21.4%. Ignoring any other factors, if the company has six shipping errors this month and an average of 3.5 days from ordered to delivered, determine (a) the new customer retention rate and (b) the new market share that Rizzo Goal Inc. expects to have.
The production department is proposing the purchase of an automatic insertion machine. It has identified three machines and has asked the accountant to analyze them to determine which one has the best average rate of return. Line Item Description Machine A Machine B Machine C Estimated average income $47,060.44 $72,961.50 $73,785.60 Average investment 336,146.00 243,205.00 491,904.00 a. Machine C b. Machine A c. Machines B and C have the same preferred average rate of return. d. Machine B
Revise your worksheet to reflect these updated assumptions and then answer the questions that follow. Sales Sale Price 9,400 units 27 Date Number of Units Unit Cost Total Cost Beginning 1,500 10.30 $15,450 March 12 2,700 10.20 27,540 June 5 1,400 10.10 14,140 October 22 5,300 9.90 52,470 Totals 10,900 $109,600 Required: 1. Use your spreadsheet to recalculate the Cost of Goods Sold, Inventory balances, and Gross Profit under each method and enter your results below: (Round your answers to the nearest whole dollar amount.). FIFO LIFO Weighted Average Cost of Goods Sold Ending Inventory Gross Profit < Prev ♡ 14 of 14 Next

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