Wilkerson Company Analysis Report

Wilkerson company
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 In case of the Wilkerson company market need to be competitive and
Mature.
 Based on the Market situation opportunities are generally limited, so that
proper innovation procedures are not avail to followed that effect
simultaneously through declining profitability (Ah Kim, yun Ryoo and joo
Ahn 2017).
 In such situation the Company usually faced the circumstances of baffled
pricing.
 Due to one product line caused competition and discounting marketing
situation and also effecting to raise prices in other products (Chavez,
Castillo-Villar and Webb 2017).
 Valves & Pumps- Two standard and high volume products
 Flow controllers - Lower volume, specialisation & higher customisation
 Generally Increased indirect overhead cost.

Valves Pumps Flow
controllers
Direct labour
cost
10.00 12.50 10.00
Direct material
cost
16.00 20.00 22.00
New
manufacturing
overhead
30.00 37.50 30.00
Standard unit
costs
56.00 70.00 62.00
Target selling
price
86.15 107.69 95.38
Planned gross
margin(%)
35.0% 35.0% 35.0%
Actual selling
price
86.00 87.00 105.00
Actual gross
margin
34.9% 19.5% 41.0%
• Labour cost are based on machine hour rate.
• Material are based on individual unit price of products.
• Overheads are also depend on the machine hour rate on the product.