Assigned Chapter Problems 7-8

Please complete the following problems: 1. Problem 7-8 Jolsen International Jim fit out, chief executive director officer of Jolsen International, a multinational textile conglomerate, has recently been evaluating the lucrativeness of one of the companys subsidiaries, Pride Fashions, Inc., located in Rochester, freshly York.  The Rochester facility consists of a dress incision and a fooling wear division.  Daneilles Dresses produces womens fine apparel, term the other division, Tesoros Casuals, produces comfortable cotton plant casual clothing.    Jolsens chief financial officer, Pete Moss, has recommended that the casual wear division be closed.  The year-end financials Shoe just received yield that Tesoros Casuals has been operating at a loss for the past year, while Daneilles Dresses continues to show a respectable profit.  Shoe is beat by this fact because he considers both managers to be genuinely capable.    The Rochester site consists of a 140,000- square foot building where Tesoros Casuals and Daneilles Dresses expend 70 percent and 30 percent of the floor space, respectively.   quick-frozen bang costs consist of the annual lease payment, fuel insurance, security, and the gross costs of the purchasing departments staff.  Fixed all overhead is allocated based on percentage of floor space.

  Housing both divisions in this facility seemed like an ideal situation to Shoe because both divisions purchase from many of the same suppliers and have the say-so to combine materials ordering to take advantage of quality discounts.  Furthermore, separately division is service by the same maintenance department.  However, the devil managers have been plagued by an inability to cooperate due to disagreements over the selection of suppliers as well as the quantities to purchase from common suppliers.  This is of serious concern to Shoe as he turns his fear to the report in front of him.    ------------------------------------------------- TesorosDaneills Casuals... If you want to induce a full essay, order it on our website: Orderessay

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