Giberson’s Glass Studio

Gibersons scrap Studio Comparison of the Past and passs for the hereafter Gibersons drinking glass Studio Income Statement For the socio-economic class ending howling(a) 31, 2007 taxs gross sales $ 31,080 fit tax revenue $31,080 Expenses Materials $ 857 gunslinger 9,200 Operating Expenses 10,210 disparagement 4,625 busy 460 come in Expenses 25,352 net profit Income 5,728 Executive Summary This report is to provide an military rank of the current financial position and prospective profitability of Gibersons Glass Studio.The calculations used and information be presented in the documents following and outlining all(prenominal) recommendation. We find the company to be in positive financial standing, but with bear-sized areas of weakness that go forth require further investigation and action by management. We go away present the following recommendations * Reset Pricing Structure * drill of Part Time Labor * Time Management computer program * reflection Shows * Product Line Expansion recommendation 1-Reset Pricing Structure Assumptions * No other changes (i. e. batch size, product size, labor, etc. ) * summation in last-place Income is preferred.Price per Item Calculations Batch Price-$21. 43 Salary per Working Week-$625. 00 intact be per Week-$646. 43 Produced Pounds-39. 3 lbs. Costs per item Patterned Glass-$8. 22 for each one Paperweights-$14. 80 each Wrapped Tumblers-$8. 22 each Vases-$9. 87 each We suggest a 50% mark-up from the total cost of each item. Gibersons Glass Studio project Income Statement-Recommendation 1 For the Year Ending overbearing 31, 20XX Revenues Sales $ 40,520 Total Revenue $ 40,520 Expenses Materials $ 857 Gas9,200 Operating Expenses 10,210 Depreciation4,625 care 460 Total Expenses 25,352Net Income $ 15,168 Recommendation 2-Use Part Time Labor Assumptions * careed in step-up efficiency. * businesss tasks are completed by Mr. Giberson only. * $5/hour meets or exceeds Minimum lucre requirements. Part -Time workers will be completing cold time production activities, such as grinding, sanding, and polishing. They will also be packing and shipping, cleaning, clerical duties, and serving customers in store front. Using part-time labor will ply for increased efficiency and allow products to be created and finished simultaneously, which allows for more production during each twenty-four hourstime.We suggest adding two part-time employees at $5/hour. Employee no. 1- Grinding, sanding and polishing 30 hours per calendar hebdomad x ($5. 00 per hour) = $150 per week Employee no. 2- Clerical work, customer service, cleaning 30 hours per week x ($5. 00 per hour) = $150 per week Gibersons Glass Studio Projected Income Statement-Recommendation 1 & 2 For the Year Ending August 31, 20XX Revenues Sales $ 40,520 Total Revenue $ 40,520 Expenses Materials $ 857 Additional Labor 12,000 Gas 9,200 Operating Expenses 10,210Depreciation 4,625 Interest 460 Total Expenses 37,352 Net Income $ 3,168 Gi bersons Glass Studio Projected Income Statement-Recommendation 2 For the Year Ending August 31, 20XX Revenues Sales$ 31,080 Total Revenue $ 31,080 Expenses Materials$ 857 Additional Labor 12,000 Gas 9,200 Operating Expenses 10,210 Depreciation 4,625 Interest 460 Total Expenses 37,352 Net Loss ($6,272) Recommendation 3-Time Management Plan Assumptions * interested in increasing profitability and efficiency. Increase in Net Income is preferred. * Recommendation 2 is accepted. establish on the recommendations do during the time management plan, we would like to increase the number of pieces produced, ultimately increasing profitability and reducing waste. Higher production would allow your backlog to ginger nut up and allow for made-to-order products to be considered and produced. Time Management will protagonist you be more aware of your productivity, keep you on task, and help you become the most productive that you can be. Time is money, as it relates to production. Gibersons P lan of Weekly ProductionDay of the Week Time Period Task definition Production Time Amount of Production Sunday 8 am 5 pm Charging Melting Material for Batch N/A N/A Monday 8 am 5 pm Fining butt to allow air bubbles to escape N/A N/A Tuesday-Saturday 8 am 10 am Lighting the Glory passel physical process to begin daily production N/A N/A 10 am 11 am Heating Ovens turn on Annealing Ovens N/A N/A 11 am- 12 noontidetide Blowing Paperweights 15 transactions each 4 per day/20 per week 12 noon 1 pm Blowing Vases 25 minutes each 2 per day/10 per week 1 pm- 2 pm Lunch Break N/A N/A N/A 2 pm -4 pm Blowing glasses 15 minutes each 8 per day/40 per week 4 pm 6 pm Blowing Wrapped Tumblers 15 minutes each 8 per day/40 per week Gibersons Glass Studio Projected Income Statement-Recommendation 1, 2, & 3 For the Year Ending August 31, 20XX Revenues Sales$ 57,920 Total Revenue $ 57,920 Expenses Materials$ 857 Additional Labor 12,000 Gas 9,200 Operating Expenses 10,210 Depreciation 4,625 Interest 460 Total Expenses 37,352 Net Income $20,568Gibersons Glass Studio Projected Income Statement-Recommendation 2 & 3 For the Year Ending August 31, 20XX Revenues Sales$ 43,920 Total Revenue $ 43,920 Expenses Materials$ 857 Additional Labor 12,000 Gas 9,200 Operating Expenses 10,210 Depreciation 4,625 Interest 460 Total Expenses 37,352 Net Income$ 6,568 Recommendation 4- Demonstration Shows Assumptions * Recommendation 2 and 3 are accepted. * Pricing remains the same structure, even though it be less to produce each item. Room for 10 people maximum, with bonny of 7 people attending at each time slot. Based on the recommendations made under the time management plan, we would like to increase the number of pieces produced, while allowing time with customers on a small separate basis to meet desires of customers and owner. Demonstration shows could charge $2 per person per showing, allowing for an supernumerary stream of income, beyond glass products. Each show would be 30 minutes long, allowing for show of making product, discussion, and question and answer time. Gibersons Plan of Weekly ProductionDay of the Week Time Period Task Description Production Time Amount of Production Sunday 8 am 5 pm Charging Melting Material for Batch N/A N/A Monday 8 am 5 pm Fining Process to allow air bubbles to escape N/A N/A Tuesday-Friday 8 am 10 am Lighting the Glory Hole Procedure to begin daily production N/A N/A 10 am 11 am Heating Ovens Turning on Annealing Ovens N/A N/A 11 am- 12 noon Blowing Paperweights 15 minutes each 4 per day/16 per week 12 noon 1 pm Blowing Vases 25 minutes each 2 per day/8 per week 1 pm- 2 pm Lunch Break N/A N/A N/A 2 pm -4 pm Blowing Glasses 15 minutes each 8 per day/32 per week 4 pm 6 pm Blowing Wrapped Tumblers 15 minutes each 8 per day/32 per week Saturday 9 am 10 am Heating Ovens Turning on Annealing Ovens N/A N/A 10 am -11 am Shows Paperweights 15 minutes each 2 per day 11 am 12 noon Shows Vases 25 minutes each 2 per day 12 noon 1 pm Lunch Break N/A N/A N/A 1 pm 2 pm Shows Glasses 15 minutes 2 per day 2 pm 3 pm Shows Wrapped Tumblers 15 minutes 2 per dayGibersons Glass Studio Projected Income Statement-Recommendation 1, 2, 3 & 4 For the Year Ending August 31, 20XX Revenues Sales$ 43,920 Show Revenue 4,480 Total Revenue $ 62,400 Expenses Materials$ 857 Additional Labor 12,000 Gas 9,200 Operating Expenses 10,210 Depreciation 4,625 Interest 460 Total Expenses 37,352 Net Income$25,048 Gibersons Glass Studio Projected Income Statement-Recommendation 2 & 3 For the Year Ending August 31, 20XXRevenues Sales$ 43,920 Show Revenue 4,408 Total Revenue $ 48,400 Expenses Materials$ 857 Additional Labor 12,000 Gas 9,200 Operating Expenses 10,210 Depreciation 4,625 Interest 460 Total Expenses 37,352 Net Income $ 11,048 Recommendation 5- Product Line Expansion Assumptions * enkindle in adding new and different products. * Increase in Net Income is preferred. * Interested in using massive parts of weekly batch that is ordinarily wasted .