ACC/561 Accounting Scenario: The Guillermo Furniture Store While many people recognize Sonora, Mexico as a beautiful vacation spot, it is also a large furniture manufacturing location in North America. Guillermo Navallez has made furniture for years near his Sonoran home. The area had a good supply of timber for the variety of tables and chairs produced by his company. Labor was also relatively inexpensive. In addition, he priced his handcrafted products at a slight premium for the quality they represented. Overall, life was good for Guillermo. Unfortunately for Guillermo, in the 1990s two events combined causing a large dent in his business. First, a new competitor from overseas entered the furniture market. Using a high-tech approach, this foreign competition provided furniture to exact specifications and did so with rock-bottom prices. Second, the sleepy communities in Sonora woke up as one of the largest retailers in the nation’s headquarters emerged nearby, and its influence had expanded considerably. With
This is the end of the preview.
access the rest of the document.
Guillermo, Flame retardant, Guillermo Furniture Store