Read Case 3.1,
Brant Freezer Company Located in Fargo, North Dakota, the Brant Freezer Company manufactures industrial freezers. These freezers come in one size and are distributed through public warehouses in Atlanta, Boston, Chicago, Denver, Los Angeles, Portland, and St. Louis. In addition, some space is used in the company’s Fargo warehouse. Young Joaquin (J. Q.) Brant, with a fresh MBA degree from the University of South Alabama, returned to the family firm, where he had once worked during summers. On his first day of work, J. Q. met with his father. His father complained that they were being “eaten alive” by warehousing costs. The firm’s controller drew up a budget each year, and each warehouse’s monthly activity (units shipped) and costs were tallied.
Exhibit 3.A shows actual 2016 figures for all warehouses, plus actual figures for the first five months of 2017. Projected 12-month 2017 budgets and shipments are also included.
Exhibit 3.B shows the Income Statement for 2016.
Exhibit 3.C is the 2016 Balance Sheet.
Using the table provided for the units shipped and warehouse costs for all eight warehouses, identify the warehouse that had the best results for the Brant Company and explain the criterion used to determine which warehouse had the best results.
Lastly, the year 2010 is nearly half over, and J.Q. is told to present the forecasted expenditures for each of the eight warehouses for the last six months in 2010. Do his work for him. Recommend steps to improve Return on Assets (ROA) for the company
Tables/Exhibits in separate attachment