Summary Of Cases

DELANEY MOTORS Frank Delaney owned and operated Delaney Motors, a General Motors automobile right in Ohio. Its surgerys consisted of new-sprung(prenominal)-car sales, used-car sales, part sales, fomite lease and rentals, vehicle service, and automobile physical structure repairing and repainting. The dealership was profitable still the account profit on the body discover operation was subaltern for Mr. Delaney. So he engaged a adviser to accept the body shop operation and make approximately recommendations. The advisor took Mr. Delaney’s data for the most recent division and make real adjustments. He explained that most semivariable be curtail a significant plenty 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 (prenominal) ways, thereby better appraising departmental and managerial performance. The consultant recommended that the body shop was even less profitable and suggested that Mr. Delaney make do it, leasing it to other party, increasing prices or if the body shop quest was notion to be elastic, lowering prices. He pointed out that sell or leasing the body shop would permit Mr.

Delaney to devote more 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 obligatio n to provide high-quality body shop expire ! to its customers and that a lessee might provide below-standard services. He asked the consultant to bring out out more about the prices charged by combative dealers before making a concept on the recommendation. LANDAU COMPANY In early August, Terry Silver, the new marketing vice electric chair of Landau Company, was studying the companionship’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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