Golf-2-Go, Inc. is a well-known manufacturer of motorized carts for golfers. Their innovative design and high-quality products have made them a popular choice among golf enthusiasts. Recently, the company received a lucrative offer from a suitor who is interested in investing in their business. This news has created a buzz in the golfing community and has left everyone eager to know more about Golf-2-Go’s future plans.
Fore! Golf-2-Go’s Motorized Carts Receive Lucrative Offer
Golf-2-Go, Inc. has been in the business of manufacturing motorized carts for golfers for many years. Their products are known for their durability, efficiency, and affordability. Recently, the company received an offer from a potential suitor who is interested in investing in their business. The offer is a lucrative one and has the potential to take Golf-2-Go to new heights.
The news of the offer has come as a pleasant surprise to the golfing community. Golf enthusiasts are eagerly waiting to see what the future holds for Golf-2-Go and how this new investment will help the company grow. With this new suitor on board, Golf-2-Go is expected to expand its operations and bring new and innovative products to the market.
Eagle Eye: A Look into Golf-2-Go’s Future with New Suitor
The offer from the suitor has put Golf-2-Go in a strong position to expand its operations. With the infusion of new funds, the company can invest in research and development to bring out new and innovative products that cater to the needs of golfers. The suitor’s expertise in the field of golfing equipment is expected to help Golf-2-Go leverage new technologies and bring out products that are more efficient and user-friendly.
The future looks bright for Golf-2-Go with this new investment. The company can now focus on expanding its reach globally and tap into new markets. The suitor’s network and expertise are expected to help Golf-2-Go build new partnerships and collaborations that can help the company grow. With this new development, Golf-2-Go is set to become a major player in the golfing equipment industry.
In conclusion, the offer from the suitor has come as a boon for Golf-2-Go. The company can now focus on expanding its operations and bringing new and innovative products to the market. The suitor’s investment is a testament to the quality of Golf-2-Go’s products and the potential that the company holds. The golfing community eagerly waits to see what the future holds for Golf-2-Go and how this new investment will help the company grow.
Golf-2-Go, Inc., a manufacturer of motorized carts for golfers, has just received an offer from a supplier to provide 2,000 units of a component used in its main product. The component is a wheel assembly that Golf-2-Go currently produces internally. The supplier has offered to sell the wheel assembly for $115 per unit. Golf-2-Go is currently using a functional, unit-based costing system that assigns overhead to jobs on the basis of direct labor hours. The estimated functional-based full cost of producing the wheel assembly is as follows:
Direct materials ….$70
Direct labor ……30
Variable overhead ….10
Fixed overhead …..50
Prior to making a decision, the company’s CEO commissioned a special study to see whether there would be any decrease in fixed overhead costs if the component was purchased instead of made in-house. The results of the study revealed the following:
a. Two fewer setups would be needed, saving $1,800 each. (The setups would be avoided, and total spending could be reduced by $1,800 per setup.)
b. One half-time inspector would be needed. The company already uses part-time inspectors hired through a temporary employment agency. The yearly cost of the part-time inspectors for the wheel assembly operation is $12,300 and could be totally avoided if the part were purchased.
c. Engineering work would decrease by 615 hours at $20/hr. (Although the work decreases by 615 hours, the engineer assigned to the wheel assembly line also spends time on other products, and there would be no reduction in his salary.)
d. There would be 200 fewer material moves, at $40 per move.
1. Ignore the special study, and determine whether the wheel assembly should be produced internally or purchased from the supplier.
2. Now, using the special study data, repeat the analysis.
3. Discuss the qualitative factors that would affect the decision, including strategic implications.
4. After reviewing the special study, the controller made the following remark: “This study ignores the additional activity demands that purchasing would cause. For example, although the demand for inspecting the part on the production floor decreases, will we not have a need to inspect the incoming parts in the receiving area? Will we actually save any inspection costs?” Is the controller right? Would this problem be avoided if Golf-2-Go had an activity-based costing system in place?
Golf 2 Go Inc a manufacturer of motorized carts for golfers
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