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QUESTION
2. Calculate the cost of a Geoffrey doll, the specialty-branded doll #106, and a cradle using thecost study conclusions.3. Compare and contrast the profitability of each doll under the new and old systems. Based onyour recomputed product costs, what actions would you recommend the company considerto enhance its profitability? What additional information would you like to have to makethese recommendations?4. How should G.G. Toys account for the excess capacity created to produce the holiday reindeerdolls? Qualitatively, how will this impact your calculated cost of the Geoffrey doll and thespecialty-branded dolls in question number 2?5. What explains the difference between forecasted and actual revenue for the Chicago plantduring March of 2000?6. Do you recommend G.G. Toys produce the Romaine Patch doll? Why or why not?Create a 5-page double-spaced business memo (narrative) to the CEO of G.G. Toysdescribing all the options available to the company. The positives and negatives of each optionmust be included in the descriptions. Make a recommendation of the best option and why. Anyassertions must be cross-referenced to the supporting documentation.The questions listed at the end of the case should be answered either in the narrative or in thesupporting documentation. You will be expected to manipulate the financial informationprovided to support your analysis and include this work in your supporting documentation
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