Reference no: EM13829098
The value chain and strategic cost analysis.
Clarion Products raises trees, cuts the trees into logs, and processes the logs into paper. Clarion Products sells the paper to a distributor, who then sells the paper to printers.
Assume that a weighted-average cost of capital of 10 percent is appropriate for timber and paper processing. Here are the costs and revenues of each stage of the value chain. All data are for the production of enough timber to produce 20,000 tons of paper.
Timber. The estimated market value of timber assets at the beginning of the year is $5,100,000 and at the end of the year is $4,800,000. Revenues, if the timber were sold in the market, would equal $2,100,000. Operating costs total $1,500,000, excluding depreciation.
Paper Processing. The estimated market value of paper-processing assets at the beginning of the year is $15,000,000 and at the end of the year is $13,000,000. Revenues, if the paper were sold in the market, would be $12,000,000. Operating costs total $9,000,000, including all costs of materials but excluding depreciation.
Distributor. The distributor sells the paper for $800 per ton. The cost of the paper to the distributor (cost of goods sold) can be found by reviewing the sales from paper processing. In addition to the cost of paper, the operating costs total $135 per ton, excluding economic depreciation. The cost of capital for the distributor is $50 per ton.
Retailer. The retailer sells the paper for $850 per ton. The cost of the paper to the retailer (costs of goods sold) can be found by reviewing the sales from the distributor. Operating costs total $25 per ton, including economic depression. The cost of capital for the retailer is $18 per ton.
a. Compute the profits of each stage of the value chain. Show amounts in total (for $20,000 tons) and per ton.
b. Assume you are advising a loan approval committee in a bank. Write a short memo to the loan approval committee in which you evaluate the profitability of each part of the value chain.
|
Hypothesis testing
: Hypothesis Testing
|
|
Cardware’s top model-requested larry viveron
: Candi Cardigan, CARDWARE’s top model, requested Larry Viveron, a well-known clothes designer and friend to give his opinion on a picture of a navy blue holiday show dress that she wanted to wear at the annual charity luncheon. Larry has designed seve..
|
|
Compute the minimum amount of steel
: Compute the minimum amount of steel that should be stocked in the warehouse at the beginning of each month, such that the company will be able to accomplish goal and In other words, the company would still like to see no customers lacking steel..
|
|
Report on cisco acquisitions and human resources practice
: Investigate the approach that Cisco Systems has used in its many successful acquisitions. What are some of the human resource practices that have made its acquisitions successful?
|
|
The value chain and strategic cost analysis
: Clarion Products raises trees, cuts the trees into logs, and processes the logs into paper. Clarion Products sells the paper to a distributor, who then sells the paper to printers. Compute the profits of each stage of the value chain. Show amounts in..
|
|
Survey of school dropouts among indigenous students
: Survey of School Dropouts Among indigenous Students in Malaysia
|
|
Investigation and employees who report wrongdoings
: The question, "Was the investigation fair and impartial?" is an example of a _______________ determination; while the question, "Were the actions and processes viewed as fair by outside entities?" is an example of a _______________ consideration.
|
|
Evaluate the intended effectiveness of the americans
: From the first e-Activity, evaluate the intended effectiveness of The Americans with Disabilities Act and The Rehabilitation Act of 1973. Determine how these laws affect human resource (HR) management
|
|
Spss mean median mode standard deviation calculation
: SPSS Mean Median Mode Standard Deviation Calculation
|