lconnell2
Sep 14, 2010, 10:58 AM
In 2006 it was decided that ABC Tire Company would implement a BPM project with the goal to decrease the manufacturing cost per tire and increase revenue from each tire sold. In order for the company to track the success (or failure) of the project they determined the following baseline data for 2006.
Total # of tires sold - 24,594
Materials Cost/Tire - $23.21
Labor Cost/Tire - $11.67
Average Retail Price/Tire - $119.00
Average Profit Tire - $84.12
After implementing the BPM project ABC Tire Company reviewed the value of the project after a year. In 2007 ABC tire sold 27,669 tires. The total materials cost in 2007 was $672,080.32 and labor cost was $303,280.56. Their accounting department has determined that during 2007 they sold their tires for an average price of $121.13. Using the data provided calculate the materials cost per tire, labor cost per tire, and average profit per tire. Using this data calculate the percentage increase or decrease in the materials cost per tire, labor cost per tire and average profit per tire.
Total # of tires sold - 24,594
Materials Cost/Tire - $23.21
Labor Cost/Tire - $11.67
Average Retail Price/Tire - $119.00
Average Profit Tire - $84.12
After implementing the BPM project ABC Tire Company reviewed the value of the project after a year. In 2007 ABC tire sold 27,669 tires. The total materials cost in 2007 was $672,080.32 and labor cost was $303,280.56. Their accounting department has determined that during 2007 they sold their tires for an average price of $121.13. Using the data provided calculate the materials cost per tire, labor cost per tire, and average profit per tire. Using this data calculate the percentage increase or decrease in the materials cost per tire, labor cost per tire and average profit per tire.