TOYWORLD

Presented by Geetika Kapur,Gouri Gupta Harpreet S Bindra, Nidhi Mathur, Piyush Jain

Case Facts
  

Toyworld Manufacturers of plastic toys Production was based on demand Company wanted to move from seasonal production to level production

Question????? Is it profitable to move to the new system of production

Profit Reconciliation
Reconciliation of Profits as per Seasonal and Level production Profits as per Seasonal Production Add: Decreases in costs Direct labour Overtime 533.00

225.00 265.00

Total Less: Increase in costs Storage and Handling Cost Interest Expense Interest Income

490.00

115.00 135.85 16.51

Total Profits as per Level Production Increase in Profits

267.36 755.64 222.64

Decision


It is feasible for the company to follow the new system of production Besides the financial benefits the company would enjoy certain non monetary benefits like:
 

Uniform usage of machine High employee morale