Summary Of Cases

DELANEY MOTORS Frank Delaney owned and operated Delaney Motors, a General Motors automobile certification in Ohio. Its functionings consisted of untested-car sales, used-car sales, part sales, fomite lease and rentals, vehicle service, and automobile physical structure repairing and repainting. The dealership was profitable barely the account profit on the body defecate operation was subaltern for Mr. Delaney. So he engaged a advisor to accept the body shop operation and make many recommendations. The adviser took Mr. Delaney’s data for the most recent class and make authentic adjustments. He explained that most semivariable be strike a significant stack of common costs. Although many of the expenses would not be significantly reduced if the owner sold certain departments, apiece department benefits from these expenses, and thus should be allocated a portion of these costs. Semivariable costs can be allocated to operating departments in some(prenomina l) ways, thereby better appraising departmental and managerial performance. The consultant recommended that the body shop was even less profitable and suggested that Mr. Delaney remove it, leasing it to other party, increasing prices or if the body shop hire was notion to be elastic, lowering prices. He pointed out that merchandising or leasing the body shop would permit Mr.

Delaney to devote much while to other areas of the dealership. Mr. Delaney considered the recommendation, but he was by no inwardness sure that profitability should be the major consideration. He snarl that the dealership had an obl igation to provide high-quality body shop e! xpire to its customers and that a lessee might provide below-standard services. He asked the consultant to bring out out more about the prices supercharged by combative dealers before making a assessment on the recommendation. LANDAU COMPANY In early August, Terry Silver, the new marketing vice electric chair of Landau Company, was studying the bon ton’s July income statement. He discovered that although the...If you loss to get a full essay, order it on our website: OrderCustomPaper.com

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