BU283 Study Guide - Final Guide: Capital Expenditure, Futures Exchange, Walmart
Document Summary
Boston whalers are sold year round but the bulk of the company"s sales occur from april through july with the peak in june. Rather than operate its production lines at a uniform rate throughout the year, boston whaler constructs the boats one month before their sale. It purchases raw materials, such as fibreglass, foam, metal, and vinyl in the month of production. The cost of raw materials averages 50 percent of the retail value of the boats produced. Boston whaler pays for construction materials one month after their purchase. Head office and sales force salaries average m per month and production wages in a given month are 15% of sales forecasted for the subsequent month. Rent is sh. 6m per month for the production facilities. Other expenses and taxes are sh. 5m per month on average. Boston whaler plans to refurbish part of its plant in june for an estimated outlay of m.
