Delaney Motors Case.

TABLE OF CONTENTS Pages Executive Summary1 Review of Facts2-3 Issues4 Analysis5-6 Conclusions/Recommendations7-8 EXECUTIVE SUMMARY This case is about how a company should allocate costs. Mr. Delaney is the owner of an automobile dealership that is profitable but not profitable in the area of the body shop department.. The predicament that he faces is that he needs to figure out how to allocate the costs among his different profit centers. One of …

…profit margin I think he should raise the prices of his service. He doesn't want to get rid or lease that portion of his business so I don't think he should. He will be able to further service his customers if he keeps the body shop but finds a way to make it more profitable by either raising prices or doing a more accurate analysis of costs so he could see where to cut costs.