Homework 8 Solution

Homework 8 Solution - You have an assignment to analyze the...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
Value 1 100 2 100 3 200 4 100 5 100 6 100 7 100 8 100 9 100 10 100 11 200 12 200 13 200 14 300 You have an assignment to analyze the costs at your mill - the Arkansas P (Georgia, Lousiana and Virginia). By coincidence, the mills all make abou to different levels of profitiability. You have started your analysis by comp These numbers are already calculated for you. You must consider each o conclude why there are differences. You can't just say "Mill X has higher h Each item is a separate question that you can earn full credit for if your an answers may be different from the approved solution, in which case you h the position included in the approved solution. Your correct answers do n principles.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Total 2000
Background image of page 2
Score Corrected Score Pulp and Paper Company - and compare it to three mills in your company ut the same number of tons, but have some structural differences that lead aring the % differences in cost of each mill against the base of Arkansas. of the Blue Shaded Cells and look through the mill models to analyze and higher XYZ costs than Arkansas", but explain what drives the difference. nalysis is adequate, or no credit for if your analysis is shallow. Your ave to provide accurate justification for why your position is stronger than ot have to be exactly the same as the solution, but must contain the key
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
0 0
Background image of page 4
Arkansas Pulp and Paper Net Sales $641,574,364 Cost of Good Sold $371,683,764 Gross Margin $269,890,599 $48,118,077 Depreciation $42,449,288 Earnings before Interest and Tax $179,323,234 Interest Expense $16,072,908 Before Tax Profit $163,250,327 Tax $0 Net Income $163,250,327 Direct Costs $247,939,061 Indirect Costs (less Overhead and Depreciation $123,744,703 Depreciation $42,449,288 Cash Flow $205,699,614 Capital Investment $14,952,846 Free Cash Flow $190,746,768 Capital Employed $297,960,696 Return on Investment, % 54.8% Manufacturing Analysis Finished Tons per Year 697,290 Net Sales per Finished Ton $920 Cost per Finished Ton $663 Direct Cost $356 Freight $52 Fiber $145 Chemicals $92 Energy $51 Finishing Materials $16 Indirect Cost $307 Maintenance $45 Labor (Excluding Repair) $88 Operating Materials $21 Other Mill Fixed Cost $24 Depreciation $61 Overheads $69 Cash Cost at the Mill $533 Freight $52 Depreciation $61 Overheads $69 Interest Cost per Ton $23 Tax per Ton $0
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Arkansas Pulp and Paper Georgia Pulp and Paper % Change Net Sales $641,574,364 Net Sales $620,062,351 -3.4% Cost of Good Sold $371,683,764 Cost of Good Sold $391,065,914 5.2% Gross Margin $269,890,599 Gross Margin $228,996,437 -15.2% $48,118,077 $46,504,676 -3.4% Depreciation $42,449,288 Depreciation $16,780,432 -60.5% Earnings before Interest and Tax $179,323,234 Earnings before Interest and Tax $165,711,328 -7.6% Interest Expense $16,072,908 Interest Expense $0 -100.0% Before Tax Profit $163,250,327 Before Tax Profit $165,711,328 1.5% Tax $0 Tax $52,443,670 N/A Net Income $163,250,327 Net Income $113,267,658 -30.6% Direct Costs $247,939,061 Direct Costs $254,405,504
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 14

Homework 8 Solution - You have an assignment to analyze the...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online