Reference no: EM133464469
Assignment:
"ABC" Manufacturing, Inc. creates the prototypes and molds that production manufacturers utilize to create consumer goods. A unique piece of design software called Virtual Design Center was created and patented by our start-up firm. The first step in our objective is to establish a precision manufacturing plant to build prototypes and molds for customers. Our mission is to offer our clients a quick turnaround, outstanding quality, unmatched customer service, and affordable prices. Molds and prototypes are created by us. Through the use of the VDC, we will collaborate in real-time with our clients to fulfill their design requirements, reducing mistakes and spotting design defects early in the process.
The consumer will subsequently save time and money as a result. In contrast to our rivals, who operate identical mold production plants, we intend to portray ourselves as a progressive business that consistently makes investments in innovative concepts and technology. We will be able to compete on pricing and quality because of our exclusive software, cutting-edge technology, and effective procedures. This manufacturing business plan will explain how we have a distinct edge because of our exclusive VDC.
We will build a high-tech, precise production plant and put in place extremely effective operational procedures to fulfill our company goals. We have a vigorous, focused marketing effort in mind to popularize "ABC" Manufacturing and our exclusive Virtual Design Software. A publicity campaign, print and internet advertising, and a focused direct-mail effort will all be a part of this. We will also put a lot of effort into developing our presence at pertinent trade exhibitions.
Short-Term Decision Making
1. Select one product that you consider dropping.
2. Calculate the impact on operating profit from dropping the product, that is, what would be the change in operating profit compared to the amount shown in the initial master budget?
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