Desirability of Integrated Learning Methodology

Question: Discuss about the Desirability of Integrated Learning Methodology. Answer: Introduction: Freemark Abbey Winery known for its production of premium quality wines. The objective of the winery is to increase the volume of production maintaining the quality in the market. However, William Jaeger, one of the owners of the Freemark Abbey Winery, finds difficulties to take decision about the timing of harvesting of grapes. There are two options: harvesting the grapes immediately or leave them on the vines in spite of approaching storm. However, there are a lot of uncertainties involved regarding the production of wines due to weather uncertainty. Heavy rainfall is detrimental for harvesting of grapes. Alternatively, a warm and light rain sometimes find ideal for making a beneficial mould, Botryis Cineria. As it seen in the excel sheet, it has been found that if the winery harvest the Riesling grapes after the storm under the Johannesburg Riesling style at 20% sugar, then light weighted wine will be produced despite the increased quantity of production. In that case, the possibilities of reputational damage could also be higher compare to if harvesting the Riesling grapes immediately. If harvesting the Riesling grapes immediately before the storm Obtained cases of wines Total Bottles (No) Per bottle selling price Total Selling price Quality of wine 1000 12000 $5.70 $68,400.00 concentrated If harvesting the Riesling grapes later the storm Obtained cases of wines (increase 10%) Total Bottles (No) Per bottle selling price Total Selling price Quality of wine 1100 13200 $4 $52,800 Thin Less : Damage Cost (i.e., advertising) $50,000 Net Revenue $2,800 On the other hand, Freemark Abbey Winery can develop the Botryis mold which holds the perfect sugar concentration and that can be sold at higher wholesale price across the market as well. If Botryis mold is being developed, Obtained cases of wines (Decrease 30%) Total Bottles (No) Per bottle selling price (avg) Total Selling price Quality of wine 700 8400 $14 $117,600 Premium However, this style of harvesting is highly uncertain because of weathers unpredictability. Thus, it would be perfect, if William Jaeger would leave the grapes to ripen more completely. In that case, the winery can sell their products for around $6.20 wholesale, despite the botrytis mold does not form for weather uncertainty. Thus, the winery should wait for the development of Botryis mold despite the chances of low production of wine. The total revenue would be higher and the quality of wine would also be highly concentrated. Based on the availability of the 600,000 pounds of grade A tomatoes one can make a combination of grade B tomatoes in order to generate a combination of grade 8. It is noteworthy to denote that coopers suggestions limit the use of tomatoes to just 800,000 lbs. which are represented in the computation. Therefore, the left over part of the tomatoes can be utilised to generate profit so that the company can make tomato paste. In addition to this, coopers suggestion can be put into the practice to generate maximum revenue by making the use of tomatoes A to produce some tomatoes juice and finish a combination of products together to generate most profits. In exhibit 3, it is found that Myers notion of prorating the cost per unit of tomato to 18 cents is calculated on the basis of the quality of the tomato grade B or A. Computation of initial equation represents that the sum of 600,000 lb. This needs to be multiplied with the cost per unit for A grade tomatoes and 2400000 lb. It is worth stated that the unit cost per lb. for tomatoes of grade B is equivalent to the overall cost paid as 3000000 lbs. It requires to be multiplied by 18 cents per lb. Secondly the equation lays down the important connection between the prices (unit-wise) for both grade A and grade B tomatoes based on the quality of the points considering both grades. Thus, the two equations are formulated by solving the yield values for the unit prices considering two grades. Bibliography: Anderson, J.A. and Leese, W.R., 2016. A Formula For The Units To Satisfy An Operation's Desired Rate Of Return In CVP Analysis-A Conceptual Approach. American Journal of Business Education (Online), 9(2), p.87. Gean, F. and Gean, V., 2015. The Desirability of an Integrated Learning Methodology for Enriching CVP Analysis. Journal of Business and Accounting, 8(1), p.127. Kumar, R., 2016. Break Even Analysis: A Glance. International Journal of Research in Finance and Marketing, 6(2), pp.175-193. Weygandt, J.J., Kimmel, P.D. and Kieso, D.E., 2015. Financial Managerial Accounting. John Wiley Sons.