Giberson Glass Studio Essay - 943 Words

Course Title: Financial Management Assignment: Mid Semester Exam Giberson’s Glass Studio Pages: 6 Table of Contents Executive Summary 3 Production Schedule 4 Product Mix 5 Product Mix and Schedule 6 Cash Flow 7 Budgeting and Finance 7 Income Statement 7 Balance Sheet 7 Executive Summary Giberson’s Glass Studio was founded to produce exquisite hand made glass by Edward Giberson in 2002 and The main problems facing the company are the production schedule and usage of the principle skill set, namely Mr. Giberson. While the business currently operates at a profit, it is not able to provide the $25,000 minimum in wages that is needed. By changing the production schedule, product mix and using†¦show more content†¦Casual duty list - Light glory hole each morning (10 hrs), Cold work (7 hrs), Packaging and Shipping (5 hrs), Tidying and Miscellaneous (2 hrs) Product Mix The other important change to bring the company into profitability is to change the product ratios and focus on the more financially rewarding items. By observing your work over the last 6 weeks, I can show that the majority of Hot Time is spent on Wrapped Tumblers and Patterned Glass. These products actual have the lowest sale price and therefore the lowest return on both time and materials. |Product |Glass Content |Hot Time |Cold Time | |Revenue | 3,341 |3,560 |6,832 | |Cost of Materials | 180 |180 |180 | |Gas | 1,000 |860 |860 | |Operating Costs | 915 |1,045 |1,045 | |Depreciation | 385 |358 |358 | |Net Profit | 861 |1,117 | 4,389 | Table 7 - Monthly Cash Flow To see what effect this has over 12Show MoreRelatedGiberson Glass Studio720 Words   |  3 PagesGiberson’s Glass Studio Giberson is a skilled glassblower facing financial difficulties in his business. His resources are draining out quickly due to the following reasons – ï‚ · ï‚ · ï‚ · Lack of proper bookkeeping following his divorce, since his wife used to take care of the activity He has no knowledge which of his 4 items – glasses, paper weights, tumblers and vases – is profitable He is in dire need of a better pricing strategy to maintain profits after accounting for costs and his wages LookingRead MoreGibersons Glass Studio Case1004 Words   |  5 PagesWei Chen Giberson s glass studio case Background Giberson is a skilled glassblower whose business is a bit confusing.ä »â€"çš„ä ½Å"å“ Ã¥â€¡  Ã¤ ¹Å½Ã¦ ¯ Ã¥ ¤ ©Ã©Æ' ½Ã¥Å" ¨Ã¤ »â€"çš„å · ¥Ã¤ ½Å"Ã¥ ® ¤Ã¯ ¼Å'ä »â€"çš„ä º §Ã¥â€œ Ã¥ â€"Ã¥ ¾â€"ç› ¸Ã¥ ½â€œÃ¥ ¥ ½Ã£â‚¬â€š He works in his studio almost every day, and his products are popular and unique.ä »â€"æ ­ £Ã¥Å" ¨Ã¨â‚¬Æ'虑æ‰ ©Ã¥ ¤ §Ã¨â€¡ ªÃ¥ · ±Ã§Å¡â€žÃ¤ º §Ã¥â€œ Ã§ º ¿Ã¯ ¼Å'æˆâ€"è‡ ªÃ¥ ®Å¡Ã¤ ¹â€°Ã¯ ¼Å'ä ¸â‚¬Ã§ § Ã¨ ® ¢Ã¥ â€¢Ã¯ ¼Å'Ã¥ ® ¢Ã¦Ë† ·Ã¨ ¦ Ã¦ ±â€šÃ¤ »â€"Ã¥ Å¡Ã¯ ¼Å'Ã¥Å" ¨Ã¨ ¿â€¡Ã¥Å½ »Ã¯ ¼Å'ä ½â€ Ã¤ »â€"Ã¥  ´Ã¦ ² ¡Ã¦Å"‰è ¿â„¢Ã¦   ·Ã¥ Å¡Ã¨ ¿ËœÃ£â‚¬â€šÃ¤ »â€"ç› ®Ã¥â€° Ã§â€Å¸Ã¤ º §Ã§Å¡â€žÃ§ º ¸Ã©â€¢â€¡Ã¯ ¼Å'çŽ »Ã§â€™Æ'æ  ¯Ã¯ ¼Å'å› ¾Ã¦ ¡Ë†Ã§Å¡â€žÃ§Å" ¼Ã©â€¢Å"å’Å'èŠ ±Ã§â€œ ¶Ã£â‚¬â€š He currently produces paperweights, tumblers, patterned glasses and vases. ä »â€"æ ­ £Ã¥Å" ¨Ã¨â‚¬Æ'虑æ‰ ©Ã¥ ¤ §Ã¨â€¡ ªÃ¥ · ±Ã§Å¡â€žÃ¤ º §Ã¥â€œ Ã§ º ¿Ã¯ ¼Å'æˆâ€"è‡ ªÃ¥ ®Å¡Ã¤ ¹â€°Ã¯ ¼Å'ä ¸â‚¬Ã§ § Ã¨ ® ¢Ã¥ â€¢Ã¯ ¼Å'Ã¥ ® ¢Ã¦Ë† ·Ã¨ ¦ Ã¦ ±â€šÃ¤ »â€"Ã¥ Å¡Ã¯ ¼Å'Ã¥Å" ¨Ã¨ ¿â€¡Ã¥Å½ »Ã¯ ¼Å'ä ½â€ Ã¤ »â€"Ã¥  ´Ã¦ ² ¡Ã¦Å"‰è ¿â„¢Ã¦   ·Ã¥ Å¡Ã¨ ¿ËœÃ£â‚¬â€š He is considering expanding his product line, or taking on custom work (one of kindRead MoreGiberson’s Glass Studio1303 Words   |  6 PagesFelicia Coates University of Virginia Darden Graduate Business School September 15, 2008 Edward Giberson Giberson’s Glass Studio Owner Dear Mr. Giberson: I appreciate an opportunity you provided for me to observe and analyze a production process at your studio. I would like to share with you my observations and recommendations. There are four products you produce at the studio: Patterned glasses, Paperweights, Wrapped tumblers and Vases. Based on amount of a batch mix and average