Kaufmann manufacturing company

Interrupting Now hold on Sandy. The following excerpts are from the January 15, meeting between Kaufmann, Stevens, and Chavez. These variances referring to the variances in Exhibit 3 are not my fault! At first, she was pleased by what she observed. Exactly what did you do to improve your performance?

Kaufmann could not understand why profits had increased so dramatically in the second half Kaufmann manufacturing company the year, even though actual sales volume had fallen tounits. Well, Mary I think our pricing strategy for this year is really going to depend on how well Carlos can control his costs.

Kaufmann Manufacturing Company (A)

During the first half ofKaufmann Manufacturing Company just about broke even on sales ofunits. For the exclusive use of Y.

Indirect labor Supplies Power 5. It looks as though your purchasing agent has been slack, your laborers inefficient, and your supervisors have tried to cover up their mistakes by cutting maintenance!

Kaufmann Manufacturing Co. (A) Harvard Case Solution & Analysis

As you know, Kaufmann manufacturing company worked for quite some time establishing the standards, and at our budget review meeting in December we all agreed that they seemed reasonable.

We lost volume, just as you predicted, but we sure gave a boost to our income statement, also as you predicted. Maintenance Supervision Depreciation Insurance Your neat little pricing strategy and its resulting decrease Kaufmann manufacturing company volume raised havoc with our production scheduling.

As you recall in our last meeting in July, Mary chewed me out for not meeting our normal production goal and for running down our inventories during the first six months of the year. Write a memo to Ms. Hertenstein of Northeastern University prepared this case as the basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation.

She would have liked to have had her treasurer-controller, Kenneth Page, at the meeting, but Mr. Kaufmann decided to meet with her sales manager, Sandy Stevens, and her production manager Carlos Chavez. It is based on an earlier case prepared by Professor Norman J. However, when she compared these results to those of the first six months of and the budgets she had originally cast for the two six-month periods see Exhibits 1, 2 and 3she became confused.

Kaufmann summarizing your analysis. In order to gain an understanding of these confusing results, Ms. Briefly explain this apparent inconsistency.

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So I go all out to meet—in fact, exceed— Professor Julie H. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means— electronic, mechanical, photocopying, recording, or otherwise—without the permission of Harvard Business School.

Give me a little time to develop some reports to explain the difference between expected and actual profitability in the first six month and the second six months of They are simply due to your generating onlyin unit sales.

In fact, my supervisors told me they felt they had done a good job in the second half of the year.

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Let me give you some general examples. Compare and evaluate the profit and manufacturing performance of Kaufmann Manufacturing Company for the first and second six months of Mary Kaufmann, president and sole owner of Kaufmann Manufacturing Company a manufacturer of a single, specialized, industrial producthad just received the financial results of her company for the second six months of Sorry, Mary, I was getting to that.A management team is studying the latest years operations and sales, which seem to have led to very confusing financial results.

Sales exceeded forecast and production for the first six months, yet. During the second half of the year, the company increased the price of the goods.

As a result the company suffered a decrease in sales but its total revenue increased due to the increasing prices. Access to case studies expires six months after purchase date.

Kaufmann Manufacturing Co. (B) Harvard Case Solution & Analysis

Publication Date: May 26, A management team at Kaufmann is studying the latest year's operations and sales, which seem to have. A management team at Kaufmann is studying the latest year's operations and sales, which seem to have led to very confusing financial results.

Sales exceeded forecast and production for the first six months, however Kaufmann reported a loss. Yet, when sales were below forecast and production above in the second six months, healthy income. Kaufman build high production metal cutting machines.

These machines are custom designed to do a variety machining operations (milling, drilling, tapping boring, etc.) for a customer given family of parts. Call us at Kaufmann Manufacturing Company. Answer#1 First Six-Months Price Variance Efficiency Variance Sales-Volumn Variance.

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Kaufmann manufacturing company
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