Even complicated and confusing topics will be easily developed and covered if you request our help writing an essay. Place an order today!


Houseware Ltd (HLtd) is a medium size company manufacturing two electronic household products - X and Y for the last 10 years.  It has been operating in a market where four other companies produce and sell products which are similar to those of HLtd. For the last few years, HLtd has been enjoying 40% of the market share until the end of 2013 and has been known as a reliable company.  Most of the customers are from middle and upper middle class section of the market that HLtd and its competitors have been serving.  

Starting from the beginning of 2014, HLtd’s sales volume has been slowly declining and by the end of 2014 the amount of sales for the year was 5% less than its 2013 sales.  Naturally, HLtd’s management got concerned and appointed a new chief financial officer (CFO) and put the CFO in charge of HLtd’s Finance Department.  The Company wants to (a) regain its lost market share and (b) increase its market share to 45% of the total market by 2020. The CFO has been asked to come up with a strategy to regain and increase the Company’s market share as stated above under (a) and (b).  
Information on HLtd’s 2014 operations is presented below.
In 2014 HLtd produced and sold 12000 units of product X and 24000 units of product Y. The prices and costs per unit of the products for the year 2014 were as in the table below.

Products    X    Y    
Selling price    $22.00    $45.00    
Variable costs    $15.00    $25.00    
Fixed Costs            $450,000

Additional information on HLtd.
1.  Variable costs for product X includes {(direct manufacturing materials cost of $4.50 per unit), (direct manufacturing labour cost of $8.00 per unit), and (variable overhead cost of $2.50 per unit)}.  Similarly, variable costs for product Y includes {(direct manufacturing materials cost of $10.00 per unit), (direct manufacturing labour cost of $12.00 per unit), and (variable overhead cost of $3.00 per unit)}.  
    
2.  A close scrutiny of the manufacturing costs incurred in producing products X and Y during 2014 revealed that for product X: the actual direct materials cost per unit was above the budgeted cost by $3 per unit of which $1 was due to the material’s market price, whereas direct labour actual cost per unit was below the budgeted cost by $3.00 per unit due to workers’ efficiency.  For product Y the actual direct materials cost per unit was the same as budgeted costs per unit, whereas actual direct labour costs per unit exceeded the budgeted cost per unit by $4.00.
Required

Assume that you are the newly appointed CFO of HLtd.  Given the information above:
(1).    Explain with justifications your assessment of the Company’s 2014 performance based on the data and information provided above. DO NO WRITE MORE THAN 65 WORDS. 5 marks

(2).    Identify what strategy or a combination of strategies HLtd should use (follow) to achieve its goals/objectives stated under (a) and (b) above.  Explain how the strategy (strategies) will achieve the Company’s objectives. DO NO WRITE MORE THAN 65 WORDS.    5 marks    



testimonials icon
Recognize: Postive/Negative Reinforcements and Punishments Evaluation Title: Operant Conditioning The table below provides th...
testimonials icon
Running head: THE AMERICAN SYSTEM1The American SystemInstitution Affiliation:Date:THE AMERICAN SYSTEMThe American system was an economic framework wh...
testimonials icon
 What is culture? Is it synonymous with nationality? Can culture emerge from the intersection of multiple factors, such as gender i...
testimonials icon
Contribute to the body of advanced practice nursing knowledge through participation in systematic inquiry, utilization of evidence-based practic...
testimonials icon
/*! elementor - v3.6.5 - 27-04-2022 */ .elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading...
testimonials icon
  "Are you looking for this answer? We can Help click Order Now"...
testimonials icon
Extra CreditPartners and partnerships do not recognize gains under section 721 when property is contributed by a partner in...
testimonials icon
/*! elementor - v3.6.5 - 27-04-2022 */ .elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading...
testimonials icon
FIND A SOLUTION AT All A+ Essays Comple...
testimonials icon
this paper is connected to last brief policy of environment science. this time i also need you to help me to do two different one. but bot...

Other samples, services and questions:

Calculate Price

When you use PaperHelp, you save one valuable — TIME

You can spend it for more important things than paper writing.

Approx. price
$65
Order a paper. Study better. Sleep tight. Calculate Price!
Created with Sketch.
Calculate Price
Approx. price
$65