Week 4 Discussion Budget Case Study 1

Week 4 Discussion Budget Case Study 1 - That will give them...

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I agree with Michele, Springfield seems to have it backwards. They should start with the production manager and see how many units they production team is capable of producing and how much they will need to cover the cost incurred to produce a maximum amount considering current labor hours or machine hours available. They could then proceed to marketing to see how much will need to be allocated to boost sales to a profitable amount.
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Unformatted text preview: That will give them a place to start with their budget. They can estimate sales based on past trends, factor in production costs, and marketing costs, then see where their estimated profit falls. This is where they can revisit the marketing or production manager to discuss changes that may need to be made to adjust the profits to meet the target goal....
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This note was uploaded on 03/26/2012 for the course AC505 AC505 taught by Professor Dillan during the Spring '10 term at Keller Graduate School of Management.

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