Delaney Motors Case.

TABLE OF CONTENTS

Pages

Executive Summary1

Review of Facts2-3

Issues4

Analysis5-6

Conclusions/Recommendations7-8

EXECUTIVE SUMMARY

This part is most how a company should totallyocate cost. Mr. Delaney is the owner of an automobile dealership that is productive but not profitable in the area of the body shop department.. The predicament that he faces is that he needs to figure out how to allocate the cost among his different profit centers. One of the things that Mr. Delaney did in trying to aid himself was to hire a consultant. The consultant was one that is very fit in analyzing the issues of cost, both fixed, variable and semivariable. He then seek to look up his knowledge to help Mr. Delaney in his dilemma. Mr. Delaney decided that he takes to provide a high quality product to his customers. He wanted the consultant to further assist him in his compend by finding out more about his competitors and the prices they charged. The consultant made suggestions that included leasing the body shop to another party, liquidating it, and increase prices but Mr. Delaney decided that profit is not his main snap at this time.

REVIEW OF FACTS

This case is about an auto dealership owned by Frank Delaney. This auto dealership included all the operations and profit centers of a normal GM dealership. They interchange new and used cars, had a parts and service department, and was in any case involved in rental and leased vehicles.

Mr.



Delaney hired a consultant who would help him analyze all his different costs associated with the struggling body division of the dealership. The consultant did many reports about the fixed, variable, and semivariable costs. In semivariable costs, what he did was make the adjustment for the amount of employees operative at the body shop to the number working at...

I had this case in my master level and i can relate to most of the writer argument. however, i was confused regarding how he/she came up with all of these conclusions and reasoning. I think that hes argument could have been stronger.

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