CMR case, Supply Chain Strategy, Please fill out the table and find EBIT. Thank you!

Question: CMR case, Supply Chain Strategy, Please fill out the table and find EBIT. Thank you! There are several parts to this assignment: 1. Manufacturing contribution: basically you calculate the revenue and variable manufacturing costs (materials plus labor). 2. The 3 Scenarios: a) You take the remaining overhead and spread it based on the revenue each segmentCMR case, Supply Chain Strategy, Please fill out the table and find EBIT.
Thank you!

There are several parts to this assignment:
1. Manufacturing contribution: basically you calculate the revenue and variable manufacturing costs (materials plus labor).
2. The 3 Scenarios:
a) You take the remaining overhead and spread it based on the revenue each segment produces (so residential gets 18% of the overhead costs allocated – regardless of what they do).
b) You take indirect labor and look into how many employees worked in the different segments (for example one person worked just on Blackstone). Then you assign that indirect labor (the salary) to that segment. The remaining overhead is allocated as in scenario 1.
c) You do the same as in b) but you do not allocate any other overhead.
That is it!
P.S. if you look carefully, there are hidden cells which might have some good information.
Please see the files you need to complete the assignment:
CMR Enterprises – spreadsheet for students-1.xlsx Download CMR Enterprises – spreadsheet for students-1.xlsx
CMR_Enterprises-Spreadsheet Data Sources-1.docx

CMR FAQs-1.docx 1) Are you sure that Blackstone materials as % of sales is 26% only? This was the same percentage as residential. This info was given in case spreadsheet. The information is correct. There is nothing different for the cabinets they make for Blackstone versus the cabinets they make for other customers. To get the amount of materials used you multiply the 26% by the amount of sales. For the entire residential market it is 26% vs 34% for the entire commercial market. 2) There were 118 employees but 75 worked in the shop. That means 43 employees did not work directly on the product. And SG