Write a memo(APA format) to Scoopy’s national office explaining your concern and suggesting a remedy.

Decision Case Chapter 23-2

Suppose you manage the local Scoopy’s ice cream parlor. In addition to selling ice-cream cones, you make large batches of a few flavors of milk shakes to sell throughout the day. Your parlor is chosen to test the company’s “Made-for-You” system. This new system enables patrons to customize their milk shakes by choosing different flavors. Customers like the new system and your staff appears to be adapting, but you wonder whether this new made-to-order system is as efficient as the old system in which you just made a few large batches. Efficiency is a special concern because your performance is evaluated in part on the restaurant’s efficient use of materials and labor. Your superiors consider efficiency variances greater than 5% to be unacceptable.

You decide to look at your sales for a typical day. You find that the parlor used 390 pounds of ice cream and 72 hours of direct labor to produce and sell 2,000 shakes. The standard quantity allowed for a shake is 0.2 pound of ice cream and 0.03 hour of direct labor. The standard costs are $1.50 per pound for ice cream and $8 per hour for labor.

 

Requirements

1. Compute the efficiency variances for direct labor and direct materials.

2. Provide likely explanations for the variances. Do you have reason to be concerned about your performance evaluation? Explain.

3. Write a memo(APA format) to Scoopy’s national office explaining your concern and suggesting a remedy.

 

Instructions:  In 600-750 words in length (not including title page and reference page), respond to the case above. Your paper must include at least two scholarly journal references (in addition to your book). Refer to the Writing Assignment Grading Criteria below for requirements in content, organization, writing style, grammar and APA 6.0 format.

Refer to the following links for APA guidelines:    APA Style          Purdue OWL

Save your assignment file as ‘LastnameFirstinitial-FINC405-WA4″, and submit by midnight EST, Day 7.

Your paper will be automatically submitted to Turnitin in the assignment dropbox. Originality reports will be returned to the faculty and student. Multiple submissions are allowed. For full credit, make sure that your Similarity Index does not exceed 25%.
Type of paper Academic level Subject area
Number of pages Paper urgency Cost per page:
 Total:

Last Completed Projects

# topic title discipline academic level pages delivered
6
Writer's choice
Business
University
2
1 hour 32 min
7
Wise Approach to
Philosophy
College
2
2 hours 19 min
8
1980's and 1990
History
College
3
2 hours 20 min
9
pick the best topic
Finance
School
2
2 hours 27 min
10
finance for leisure
Finance
University
12
2 hours 36 min