2. PRESENTED BY:- GROUP NO. A5
 Chandan Pahelwani (11047)
 Himani Parihar (11049)
 Nikita Bali (11004)
 Sonia Dadlani (10022)
 Sunny Bhuva (11010)
Presented to:-
Prof. Deepa
Mishra

3. GIST OF THE CASE
 Giberson is well known in making different
types of glasses.
 Felicia coates,an MBA student visiting
giberson’s glass studio.
 She shadows upon financial statement of
giberson’s which were previously taken care
by Mrs.giberson which was neglected after
their divorce.

4. CONT…..
 The main key concern point is that Giberson
has no pricing strategy for the production.
 His financial position is deteriorating.

5. PROBLEM
 Book keeping
 Need of additional resources .
 No pricing strategy.
 Rapid deterioration of financial position.

6. SWOT ANALYSIS
• Qualit • Extra
y cost(labour)
• Sales • Operating cost
• Orders • Need of
additional
financing
Strength Weakness • Life span of
facilities
Opportunity Threats
• Trade • Environmen
shows taIssues
• Information • Loosing
al customers
technology

7. CRITERIA
 Batch wise cost
 Production time
 Weekly production

8. OPTIONS
 To maintain batch wise profit.
 Maintenance of accounts.

9. OPERATING COST
Cost per Operating
Item Months
month Costs
Office Supplies $ 25 10 $ 250
Hand Tools/Manufacturing Supplies $ 150 10 $ 1,500
P/T Labor($5/hr) $ 100 10 $ 1000
Other Operating Costs $ 640 12 $ 7,680
Truck $ 205 12 $ 2,460
Furnace (GAS) $ 1,000 10 $10,000
Depreciation on Furnace (2 Years) $ 208 12 $ 2,500
Depreciation on Equipment (8 Years) $ 31 12 $ 375
Depreciation on Truck (5 Years) $ 142 12 $ 1,700
Depreciation on Gas Tanks (8 Years) $ 4 12 $ 50
Salary $ 2,083 12 $ 25,000
TOTAL $ 52,515

10. TOTAL ANNUAL REVENUE
Category Unit Price #Units Sales
Pattern Glass $9 760 $6,840
Paperweights $15 400 $6,000
Wrapped Tumblers $8 1280 $10,240
Vases $25 320 $8,000
Total Annual Revenue $31,080

11. Annual Loss
COGS
Revenue - (materials) - Operating
Expense = Net Loss
$31,080 - $857 - $52,515 = - 22,292

12. ACTION PLAN
 To find the relevant cost batch wise so that
he can gains minimum margin profit.
 Also he should maintain the books of
accounts.

13. MATERIAL BATCH WISE COST
Cost per batch = 21.42
Total lbs. = 169
If Increase material used to 200 batch then
169 - - - 21.42
200 - - - - ?? = 25.35
CostBatch Total work Total Cost
done in
week
Old 21.42 40 weeks 856.8
New 25.35 40 weeks 1014

14. DECISION
 To prepare the books of accounts.
 To evaluate cost as per batch because they
are doing batch wise costing.

15. CONTINGENCY PLAN
 To increase the cost batch wise so that profit
can be easily maintained.
 Reduce the units in batch and keep the price
same so that actual gain can be done.