Report on Business Decision Making in Organization
Added on 2020-04-13
6 Pages1896 Words63 Views
Running Head: Business Decision Making 1Project Report: Business Decision Making
Business Decision Making 2Introduction:This report depict about a case in which various tools of excel has been analyzed to identify the total number of units which must be produced by the company to manage the functions and the performance of the company. Purpose of the report:This report has been prepared to analyze the case and make a better decision about thetotal production units. This report depicts the management of the company that how much units would offer them highest return and through which they could utilize the machine hoursat their maximum. Further, this report also assists the management of the company to make better decision. Description of problem:In the given case, ABCD limited is the equipment manufacturing company which manufactures football and basketball. In the given report, the total machine hours available for the company has been given and according to that, company could manufacture the football and basketball. All other given information, such as labour hour, selling price etc has been given. In the given case, net profit of the company has been analyzed. Methodology:For analyzing the total production units of the company, excel spreadsheet has been used by the company. For solving the case, the machine hours of the company has been analyzed and further, it has been found that how much time it would take to the company to produce or manufacture the Basketball and Football (Wheelen & Hunger, 2017). Through theanalysis, it has been found that the 0.5 would be taken for manufacturing the basketball and 0.3 hour would be taken for manufacturing the football (David, 2011). Through the analysis, it has been found that if company would manufacture Basketball or Football, than the total machine hours of the company would be 21000 and thusthe rest tile, machine would be idle. So, company is suggested to enhance the level of the Production of basketball and football (Gaughan, 2010). Further, it has been analyzed that the total machine hour would be 39500 hours if the production of basketball and football would be 55000 units and 40000 units. So, company is suggested to manage the level of the
Business Decision Making 3Production of basketball and football to 55000 units and 40000 units (Fitzsimmons, Fitzsimmons & Bordoloi, 2008).Further, it has also been analyzed that it is quite required for the company to manage the production units according to the machine hours to enhance the level of the production as well as the profits. Through the analysis, it has been found that the total profit of the companywould be enhanced when the total production of the company would be enhanced; the only fixed cost of the company is related to its machine hours (Dean & Yunus, 2001). So, if the company would manufacture 55000 units of the basketball than the total profit of the company would be $ 3,56,000 and at the same time, if the company would manufacture 40,000 units of the football than the total profit of the company would be $ 2,28,960 (Best, 2009).Working Note:Total Machine Hours39000-40000HoursIf company would produce, 30000 units ofbasketball than total machine hour wouldbe 15000Whereas, If company would produce,20000 units of football than total machinehour would be 6000Though, the total machine hour would be 21000 and thus the rest tile, machine would beidle. So, company is suggested to enhance the level of the Production of basketball andfootball.Further, if company would produce, 55000units of basketball than total machine hourwould be 15000Whereas, If company would produce,40000 units of football than total machinehour would be 12000Thus, the total machine hour would be 39500 hours if the production of basketball andfootball would be 55000 units and 40000 units. So, company is suggested to manage thelevel of the Production of basketball and football to 55000 units and 40000 units (Hill,2008).Statement of profitBasketballFootballPer unit55000 unitsPer unit40000 unitsSelling price $ $ 11440000
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