Birlin Toyota case
1. Assuming the same gross profit rate $10.6% and target profit $1,300 per vehicle as in “A Note on Trading In Motor Vehicle” (page 29), calculate the maximum trade-in allowance in Mr. Bogard’s initial negotiations with the customer. 2. Evaluate the way the service department charges for the internal work. Service department (represented by Mr. Berry and Mr. Rounds) is frustrated with the current interdepartmental pricing system. What suggestions would you make to improve the situation for Berlin Toyota as a whole? 3. Comment on the allocation of general overhead ($269,559 in Exhibit 3) to the four sections (that is, Customer Pays, Internal, Warranty Work, Extended Work) of the service department. What measure should be used to evaluate profitability of the four sections? 4. What suggestions would you make to reduce the conflict between the new car sales department and the used car sales department? 5. Evaluate the current “profit center” system employed by Berlin Toyota. Given the conflicts among profit centers as illustrated in the case, what suggestions would you make to improve?
👀 Other Visitors are Viewing These APA Case Study Samples:
- Short Answer Monitoring Internal Controls Activities1 page/≈275 words | No Sources | APA | Accounting, Finance, SPSS | Case Study |
- Types of Hedges Requiring Special Accounting2 pages/≈550 words | No Sources | APA | Accounting, Finance, SPSS | Case Study |
- Anonymous Caller Case5 pages/≈1375 words | 4 Sources | APA | Accounting, Finance, SPSS | Case Study |
- Accounting Internal Controls Finance Case Assignment2 pages/≈550 words | 2 Sources | APA | Accounting, Finance, SPSS | Case Study |
- Case study 2: JC Penney Using the Return on Equity2 pages/≈550 words | 1 Source | APA | Accounting, Finance, SPSS | Case Study |
- Difference between cash and cash equivalents1 page/≈275 words | 2 Sources | APA | Accounting, Finance, SPSS | Case Study |
- Project: The Bank of New York Mellon Corporation (BK)10 pages/≈2750 words | 5 Sources | APA | Accounting, Finance, SPSS | Case Study |