CASE

CASE31BrantFreezerCompany
LocatedinFargo,NorthDakota,theBrantFreezerCompany
manufacturesindustrialfreezers.Thesefreezerscomeinonesize
andaredistributedthroughpublicwarehousesinAtlanta,Boston,
Chicago,Denver,LosAngeles,Portland,andSt.Louis.In
addition,somespaceisusedinthecompanysFargowarehouse.
YoungJoaquin(J.Q.)Brant,withafreshM.B.A.degreefromthe
UniversityofSouthAlabama,returnedtothefamilyfirm,where
hehadonceworkedduringsummers.Onhisfirstdayofwork,J.
Q.metwithhisfather.Hisfathercomplainedthattheywerebeing
eatenalivebywarehousingcosts.Thefirmscontrollerdrewup
abudgeteachyear,andeachwarehousesmonthlyactivity(units
shipped)andcostsweretallied.
EXHIBIT 3-A Brant Freezer Warehouse Performance

Exhibit3Ashowsactual2009figuresforallwarehouses,plus
actualfiguresforthefirstfivemonthsof2010.Projected12month
2010budgetsandshipmentsarealsoincluded.Exhibit3Bshows
theincomestatementfor2009.Exhibit3Cisthe2009balance
sheet.IfyouarefamiliarwithExcelorotherspreadsheetsoftware,
youmighttryusingittoanswerthefollowingquestions.

EXHIBIT 3-B Brant Freezer 2009 Income Statement

EXHIBIT 3-C Brant Freezer 2009 Balance Sheet

1.Whencomparingperformanceduringthefirstfivemonthsof
2010withperformancein2009,whichwarehouseshowsthemost
improvement?
5.Theyear2010isnearlyhalfover.J.Q.istoldtodeterminehow
muchthefirmislikelytospendforwarehousingateachofthe

eightwarehousesforthelastsixmonthsin2010.Dohisworkfor
him.