Prepare A Value Chain Analysis For Sheldon To Assist In Deciding Whether To Purchase 4143062

Purpose The purpose of this presentation is to develop the skills necessary to describe management accounting and its environment. In addition to this evaluate an organisation’s product development using value chain approach and target costing. Required Students are required to work individually for this presentation. Each student is required to choose only one out of the two case studies given and give a PowerPoint presentation of the findings, explanations and possible suggestions in class. Presentation Guidelines • Power Point presentation will be approximately 10 minutes in class on 2nd October 2019. • Prepare no more than 12 slides for this presentation • At the end of your presentation, hand in the hardcopy of the Power Point slides to your lecturer together with the completed AIS cover sheet. • Softcopy of the presentation slides and notes should be submitted to Moodle. • The notes should be in Microsoft word, 12 pt, Arial and be in 1.5 spaced lines. • Include the relevant references to the PowerPoint slides using the APA reference style. Case Study One Value-Chain Analysis Sheldon Radio manufactures yacht radios, navigational equipment, and depth-sounding and related equipment from a small plant near Tauranga. One of Sheldon’s most popular products, making up 40% of its revenues and 35% of its profits, is a marine radio, model VF4500, which is installed on many of the new large boats produced in the New Zealand. Production and sales average 500 units per month. Sheldon has achieved its success in the market through excellent customer service and product reliability. The manufacturing process consists primarily of the assembly of components purchased from various electronics firms plus a small amount of metalworking and finishing. The assembly operations cost $110 per unit. The purchased parts cost Sheldon $250, of which $130 is for parts that Sheldon could manufacture in its existing facility for $80 in materials for each unit plus an investment in labor and equipment that would cost $35,000 per month. Sheldon is considering outsourcing the marketing, distributing, and servicing for its units to another New Plymouth firm, Sun Enterprises. This would save Sheldon $125,000 in monthly materials and labor costs. The cost of the contract would be $105 per radio. Required 1. Prepare a value-chain analysis for Sheldon to assist in deciding whether to purchase or manufacture the parts and whether to contract out the marketing, distributing, and servicing of the units. 2. Should Sheldon (a) continue to purchase the parts or manufacture them and (b) continue to provide the marketing, distributing, and servicing or outsource these activities to Sun Enterprises? Explain your answer.



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