Purchase Solution

BPM project to decrease cost per tire and increase revenue

Not what you're looking for?

Ask Custom Question

See attached file for proper format of tables.

In 2009 it was decided that ABC Tire Company would implement a BPM project with the goal to decrease the manufacturing cost per tire and increase revenue from each tire sold.

To track the success (or failure) of the project they determined the following baseline data for 2009.
Total # of Tires Sold Materials
Cost Per Tire Labor
Cost Per Tire Average Retail
Price Per Tire Average Profit Per Tire
24,594 $23.21 $11.67 $119.00 $84.12

After implementing the BPM project ABC Tire Company reviewed the value of the project after a year and identified the following information
Total # of Tires Sold Total Materials
Cost Total Labor
Cost Average Retail
Price Per Tire
27,669 $672,080.32 $303,280.56 $121.13

Using the data provided above calculate and provide
Materials Cost Per Tire Labor Cost Per Tire Average Profit Per Tire % Increase or Decrease in Materials cost Per Tire % Increase or Decrease in Labor cost Per Tire % Increase or Decrease in Average Profit Per Tire

Address the following questions:

1. Why is it important to ensure baseline data is accurate?
2. Was the project successful?

Attachments
Purchase this Solution
Solution Summary

BPM project to decrease costs per tire and increase revenues are examined.

Purchase this Solution
Free BrainMass Quizzes
Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Operations Management

This quiz tests a student's knowledge about Operations Management

View More Free Quizzes
Related BrainMass Solutions

  • The effect of subsidy

    Answer: Increase in the price of rubber which is a raw material in the production of automobile tires increases the cost of production which decreases profit and consequently decreases the incentive to produce. That causes decrease of supply. d.

  • Introduction to Management Science: The Retread Tire Company and The Evergreen Fertilizer Company

    The company's fixed monthly cost is $25,000, and its variable cost per pound of fertilizer is $0.15. Evergreen sells the fertilizer for @0.40 per pound.

  • Capital budgeting

    In addition, the SuperTread project will incur $25 million in marketing and general administration costs the first year. This cost is expected to increase at the inflation rate in the subsequent years.

  • Memorandum

    Discuss the effect of a volume increase in sales, a price increase in sales, and a cost decrease on the net operating income. Calculate the payback period for the new equipment project.

  • Identify 3 potential Six Sigma projects relate dto a logistics company

    Cost: Better information system to cost $20,000. The implementation would cost another $5000 making total to $25,000. The total estimated time for the project is 4 weeks. Project Savings: Revenue will increase by $1000 per day.

  • Fixed annual and variable costs

    The company charges $25 to recap a tire. a) For annual volume of 12,000 tires, determine the total cost, total revenue, and profit. b) Determine the annual break-even volume for the retread Tire Company operation.

  • Finding NPV of given project

    Solution Cost of Project=4000 Depreciation MACR year 1=33.33% Incresae in working capital=1000 year 2=44.45% Incresae in Revenue= 2000 per year

  • Managerial accounting: master budgeting

    Refer to the original data. f. An Average increase in selling price of $.05 and 100% decrease in revenue miles. g.

  • output, price, total revenue, and total profit

    Fixed development cost for the current year is $600,000. Marginal costs for manufacturing and distribution are $63 per tire.

View More Related Solutions