Dakota Office Products - Case Analysis

1620 words 7 pages
Dakota Office Products Case Analysis

BUSA 5061: Accounting For Managerial Decision-Making

November 4, 2010

The following analysis is written for Dakota Office Products to evaluate current business operations and recommend future actions necessary to ensure company success. In our analysis of the company we will identify inefficient business practices that have led to the companies first profit loss in its history. We will evaluate the company’s current pricing structure, ordering methods, shipping and delivery process, and deficiencies in cash flows. Dakota Office Products current pricing system is inadequate for its current operating environment. Dakota Office Products is a regional distributor of office products to
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| $ 10 |6 | $ 60 | | |
|Order Entry - Manual | $ 4 |60 | $ 240 | | |
|Validate EDI Orders | $ 5 |6 | $ 30 | | |
|Operating Costs | | | | $ 11,930 | |
|Accounts Receivable | | | $ 9,000 | | |
|10% interest on AR | | | | $ 900 | |
|Contribution to general and selling expenses, | | | | $ 5,170 | |
|and profit | | | | | |
| | | | | |5.02% |

Table 4
|Customer B |Allocation Rate |Qty | | | |
|Sales

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