Blue Ridge Manufacturing Company Essay examples

1871 Words Aug 5th, 2008 8 Pages
CASE FOR USE WITH
OROS QUICK® ABC SOFTWARE

Blue Ridge Manufacturing Company

BACKGROUND:
Blue Ridge Manufacturing is one of a dozen companies that produces and sells towels for the U.S. "sports towel" market. A "sports towel" is a towel that has the promotion of an event or a logo printed on it. They're called sports towels because their most popular use is for distribution in connection with major sporting events such as the Super Bowl, NCAA Final Four, Augusta National Golf Tournament and the U.S. Open Tennis Tournament. Towels with college, NBA and NFL team logos, and promotions for commercial products such as soft drinks, beer, fast food chains, etc., are also big sellers. The firm designs, knits, prints and embroiders
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E RIDGE MANUFACTURING
Sales Information
Product and Customer Size Statistics Sales in Units by Customer Account Size Large Medium Small Total Towel: Regular 27,250 16,600 10,550 54,400 Mid-Size 36,640 18,552 10,308 65,500 Hand 35,880 19,966 95,954 151,800 Special 480 3,426 594 4,500 Number of Units Sold 100,250 58,544 117,406 276,200
Number of Units Embroidered 5,959 6,490 29,394 41,842
Number of Units Dyed 20,536 9,935 12,328 42,798
Sales Volume Revenue $308,762 $183,744 $318,024 $810,530
Number of Orders Received 133 845 5,130 6,108
Number of Shipments Made 147 923 5,431 6,501
Number of Invoices Sent 112 754 4,737 5,603
Accounts with Balance >60 Days 1 11 122 134

TABLE 2
BLUE RIDGE MANUFACTURING
Unit Cost Information Line 1 Direct Manufacturing Costs Per Unit Quantity Sales
Price Material Labor Overhead Unit Cost Towels: Regular 54,400 $3.60 $0.60 $0.37 $0.22 $1.19 Mid-Size 65,500 3.20 0.50 0.33 0.20 1.03 Hand 151,800 2.55 0.39 0.31 0.19 0.89 Special 4,500 4.00 0.67 0.48 0.29 1.44 Line 2 Direct Costs of Customizing Per Unit Quantity Cost Material Labor Overhead Total Inking (based on passes) 552,400 — $0.0030 $0.0045 $0.0742 $0.0817
Dyeing 42,798 $0.11 — — 0.0000 0.1100
Embroidery 41,842 — 0.0026 0.1750 1.0994 1.2770 Direct Labor Wage Rate: $9.00 (Including

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