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1. a). What is your estimate for the financial statement and balance sheet in 1983?
b). What are your estimates for ROA in 1983? (Assuming 40% tax). How does the company do in 1983?
Assume the price and cost components did not change between the years 1983 and 1985.
2. Take the approach to the allocation of costs for manufacturing, sales and delivery costs, what your estimated income and earnings stove oven to year 1985?
3. What is your estimate for the 1986 financial statements only if the oven is sold (30,000 units)?
4. How much the price, on average, for delivery in the core areas and stove burner shipments outside the core area?
5. How much the price, on average, to generate sales orders on the stove and oven in the core areas outside the core area?
6. How big is the order (number of units) required for the oven outside the core area in order to get lucky? For stoves?
7th. What is your advice to Tim Morrissey? Describe in specific and show your support analysis

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Submit your homework question or assignment here: * Attach Assignment (optional): * Due Date: Choose date Time: Our current time in (CST) is Tue May 25 2010 2:38:53 AM Get an answer to this Accounting homework question! Get your custom answer from our expert tutors to this homework question: CASE Morrissey FORGINGS, Inc. . In early 1986, Tim Morrissey reviewed the disappointment at the company's operating results in 1985 (see Exhibit 1). Business established in 1938 by Tim's grandfather as a modernization of a scrap metal company, had been built earlier by the great-Team since 1902. The Company entered the business Stove (stove) when this product is sold in the market in the early 1970s. In the year 1977 only use the stove heating product line. Business which operated outside the factory and office space rental in Bridgewater, Vermont which is believed by his family as a factory owner. Business is run very well until the year 1980, with market power for heating source environment in sensitive areas of New Zealand where the company operates. Stove sales in 1983 were $ 9,000,000, - to 30 000 units. But in the year 1985 stove sales decreased by more than 30 competitors, industry leading technology, the market decline, the price level is high, and strong competition. In mid 1980, it was felt that the 'Wood Stove' has environmental problems (air pollution), surpassing the solution about the environment. EPA Act concerned with this industry. Associated with declining profits, lower unit sales and a large industrial capacity, MFI introduced a new product line in 1988 - a combination stove and oven. This product requires little modification of the stove. Price per unit oven is $ 10 for materials and labor, and Morrissey give oven price $ 50 higher than the stove ($ 350 vs. . $ 300). These products generate contribution margin per unit $ 40, thus pushing Morrissey to try to develop the product market in the oven. MFI distributes via dealers stoves in the Northeast area who know the products with reliable quality degan. The Company together with dealers and customers advertising and sales promotion (6% of sales), but the marketing sales by dealers has been there from the 6th place of the branch sales in 1983 up to 12th place in 1985, divided into two areas. When the product oven plus, Morrissey does not menggharapkan high penetration dealer immediately, so he expanded sales of as much as possible. Stoves that sold more in the 'core' area (northern New York and six New England states) in the six branches and an area sales manager. Morrissey had to negotiate the sales outlet for the oven more than ¼ of the Northeast, from Maine to Chicago, St. Louis, and Virginia. In 1985 he added six sales regions and an area sales manager who works outside the core area. Marketing procurement ovens also require new investments in advertising, dealer promotions, dealer discounts, and sales incentives. Total cost of sales in 1985 were $
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