ACC30009 Analysis for Competitive Advantage Mini Case Study One - Semester 2, 2021 Instructions: 1. Answer this mini case study in a group (group assignment grouping); 2. Place the names and IDs of your team members at the beginning of your answer paper; 3. This Mini Case Study carries 2% of the total mark of the unit; 4. Use MS Word to prepare your answers; 5. Header - follow the one in the question paper (above); 6. Footer - page number in the centre; 7. This question paper has two pages; 8. Email your answer to cfung@swinburne.edu.my BEFORE 15 November, Monday, 4:00pm. Mini Case Study One Bedtime Stories Ltd (BSL) is in the business of making bedsheets for sale in departmental stores as well as for hotel use. The accountant has just completed a customer profitability analysis for these two market segments. The following are the relevant information on the analysis: Sales revenue $380,000 $247,600 Cost of goods sold $160,000 $124,000 General administration costs $38,000 $32,000 General selling costs $48,000 $36,000 Other information: Customer-driven activities Special handling Special shipping Sales activity Order taking Customer-driven activities Departmental stores segment Sales activity 8 sales visits 800 units handled Special handling Special shipping 18 shipments Order taking 15 purchase orders Departmental stores segment Hotels segment Cost driver Cost driver rate Units handled $100 Shipments $1,000 Sales visits $2,000 Purchase orders $400 Hotels segment 6 sales visits 600 units handled 20 shipments 20 purchase orders Required: (a) Prepare a customer profitability analysis for these two market segments. (7 marks) (b) Comment on the performance of the two market segments. (3 marks) (e.g., which segment performed better, why is that segment performed better, etc.) 1
ACC30009 Analysis for Competitive Advantage Mini Case Study One - Semester 2, 2021 One of the components needed in the manufacturing processes is dye. There are four major colours, i.e., blue, red, green and yellow. The following are the details about the blue dye. Annual demand for blue dye 15,000 cans Ordering costs per purchase order $128 Carrying costs per year 15% of purchase costs Cost of the blue dye $10 per can Buffer stock of blue dye 100 cans Figure 1. Fabric dyes The average lead time for supplier to deliver the dyes is 1.5 week but it could take up to a maximum of 3 weeks, occasionally. BSL operates 50 weeks a year. Required: (c) Calculate the Economic Order Quantity (EOQ) for the blue dye. (2 marks) (d) Calculate the reorder level (in cans) for the blue dye. (2 marks) - End of Question Paper - 2