Thursday, February 21, 2019
Accounting Analysis Essay
Michael Burton has recently been hired as the CEO of Tesca works, Inc. Previously he had been the marketing manager for a large manufacturing federation and had established a reputation for identifying saucy consumer trends. Tesca Works Inc. is a California-based generator manufacturing company. The company is vigorous known for manufacturing large, heavy-duty generators at a reasonable cost. One of its sterling(prenominal) achievements is that its generators can be easily modified or customized for different applications. Also, Tesca Works currently builds commercial-grade appliances.The company is considering an expansion of its current product delimit to include refrigerator and maybe, sometime in the future, consumer appliances. Mr. Burton feels that due to high capacity pr ice rinks, consumers will be more willing to consider purchasing new efficient appliances.See more Beowulf essay essayTesca Works Inc. is a California-based generator manufacturing company. The company is well known for its innovation and ability to bring forth high quality products at a reasonable cost. One of its superior achievements is that its manufacturing processes are adaptable to other durable goods. Also, Tesca Works currently builds commercial appliances.Profile of Tesca Works Tesca Works, Inc. was established by the Smith brothers in 1880 as the Logging Saw Company. The firm started manufacturing large steam saws to serve the enter industry which processed lumber. Their customers were construction companies that provided housing for the population make up in California. The Smith brothers quick realized that the times were changing. They started looking for the technologies that would keep them at the forefront of their field of business. In 1915, the Smith brothers decided that they needed to misrepresent generators as replacements for the saws. They realized that the logging industry was not viable any longer and that generators were starting to serve the same purpose.The company started making generators in the too soon 1940s. Tesca Works then opted to affirm commercial appliances. It was an easy decision to illuminate since the commercial appliances would use common parts with the companys generators and the customers were local anaesthetic hospitals, schools, and governments. Starting in the 1950s the commercial appliances business accounted for close 50% of Tesca Works revenues.The Refrigerator Mr. Burton arranged a meeting with the firms top management and the chief design and the chief manufacturing engineers to propose a new product. Mr. Burton presented an argument that more individuals in the United State and Canada would be willing to purchase newer appliances because great deal are becoming more environmentally conscious. The new appliances are more efficient and environmentally friendly. Also, the recent increase in electricity costs seems to be long lasting. This is an opportunity to corroborate people hooked on envir onmentally friendly appliances as he put it.The proposal under consideration is for the introduction of a new, zip star refrigerator. To distinguish Tesca Works from other manufacturers, the proposal included expand about the convenience, large shelves in the doors, high volume water and ice dispensers, efficiency, and quietness of operation that need to be developed.Mr. Phillips and Mr. Lopez, the cardinal engineers, enthusiastically and quickly pointed out that the needed technology could be based on the companys generators. The framework currently apply for building the generators can be modified to work for appliances at a emit cost. The marketing delinquency president, Mr. Chen, pointed out that the marketing analysis could be done quickly and at a reasonable cost. At this point, Mr. Burton charged the participants in the meeting to produce a financial plan for the development and production of the refrigerator.Consumer Appliances Most people purchase appliances and keep them for a very long time or until they stop working. Some get them when they purchase a home and do not think about them.Recently, most power companies started educating people about the efficiency of new appliances and began offering rebates on the most efficient consumer models. These approaches increase public interest. This renewed the publics interest in low power-consuming appliances.The Decision Three weeks later, the vice presidents presented the sales and cost forecasts shown in the exhibits. The education presented contains the cost of production, financing information, and warranty cost estimates. In addition, there were two options for the compressor in the refrigerators. The MC 004 is more expensive to install, but has a trim down warranty cost. The TS L12 is cheaper to install, but has a higher warranty cost. Which compressor should be used?