FIU Accounting Bridgestone Behavioral Health Center Discussion

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 give the copied opinion  counter constructive feedback. 
 Bridgestone Behavioral Health Center  the Voter Sante   case studies

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1.
In the Bridgestone Behavioral Health Center case study presentation, I believe
that the group was able to achieve a full analysis that was presented thoroughly. I
would have liked to see more of a background on Bridgestone to get a better
feel for the issues they are having but one key point in the Introduction slide
(Slide 2) that was noted was that they get most of their income determined by
government funding. This is crucial when determining additional ways to increase
income as well as certain risks which they discuss later in the PowerPoint.
In Slide 10, the group discusses the categories of fixed costs, categorized
between discretionary and committed. I agree with the categorization of all of the
costs, however, salaries and benefits is a tricky one given that the salaries of
executives and others may be classified as committed. However, the decision to
add them to the 10% deduction can be justified.
In Slide 14, when discussing the possibilities of losses in revenue, it was a nice
addition to include the possibility of the government not providing as much
funding as before. This is a crucial aspect of the company which is why it was
necessary to highlight the possibility of a lessened amount. This brings me to
the next slide that caught my attention, which was Slide 19 “Increasing
Profitability”. I believe the ideas provided to increase profitability were all great
options. I would have added that in today’s digital world, Bridgestone would
benefit from having the ability to meet with clients virtually. This is an option
that would cut various costs and also allow for more patients to use the services.
Possible transportation costs would be reduced, as well as the ability for clients
to book appointments more freely. Virtual meetings may not be for everyone,
but for the people that enjoy this style, it would provide an easier way to have
more clients at a lower cost. I would have gone further with the Employee
Assistance Program, which was mentioned in the case study itself and added the
possibility of bringing their services to colleges around the area. Although
schools may offer such services, many would benefit from this partnership.
Group one’s presentation approached different ways Bridgestone Behavioral Health
Center can successfully attain and maintain a breakeven point, which is something the
center has been struggling with for the past few years. Group one did a fantastic job at
analyzing the Center’s costs and financial statement. At the core of the presentation is
the realization that any slight change in revenue or costs may drastically affect the
center’s financial position both negatively and positively. This is supported by slide 11
which emphasizes the weighted average contribution margin in relation to the relative
contribution.
Although, I do agree with group one’s stance that fixed costs should be decreased,
decreasing employee salaries is not the solution.
In slide eight, the idea of reducing unnecessary salaried employees is mentioned as a
method for the Center to anticipate a profit however this may hurt more than help
Bridgestone. The rehabilitation center credits their employees as being the “key reason”
for the Center’s success. The low client to staff ratio ensures clients there receive the up
most professional help they can on their road to sobriety. Reducing staff may influence
the level of quality clients receive in treatment which might drive them away thus
affecting revenue. It was also mentioned in the case study that Dr. Russel is debating
hiring a consultant to further help avoid future costs however adding an additional
salary does not seem like the answer especially if it will further affect their current staff
2 In the Group 3 presentation, Votre Sante on the Sales Revenue Slides a comparison is made
between the different types of wines, their quality, and the sales revenue of each. Then a
conclusion is drawn out as to whether or not the company should continue to produce the Blanc
de Blanc wine, The Chardonnay wine is the most expensive as well as the most profitable, then
the Blanc de Blanc wine, and finally, the Regular Chardonnay, which is a mix of grapes produces
the least amount of sales. there is an opportunity here with the regular chardonnay, sales are
currently the lowest of the three products. Then in the decision profit analysis slide, an analysis is
made, this analysis is about a new line of wine the Blanc de Blanc which is in fact a profitable
decision. In the following slides, there are positive and negative factors to be considered. But the
most important part is the brand recognition that the new product will bring to the brand and
this paired with some marketing focusing on the Regular Chardonnay which is the one made
with the mixed grapes, the profit margin as a whole can be increased significantly. They have
concluded that AVS should not pursue the Blanc de Blanc but I believe that the fixed costs will
justify the production of the Blanc de Blanc. Currently, the Regular wine is the one with the
lowest sales so there’s an opportunity with this new line to attract new customers to the other
wine lines specially the Regular Chardonnay. With a higher market share and more products to
offer, brand recognition paired with the new customers looking for something different will
increase sales of all lines and leave the company in a better position
In the Voter Sante case presentation by group 3, various factors are stated as a
consideration of whether to support the purchase of additional grapes, and other
factors stated as a consideration to reject the buying of grapes. Under the slide titled
“Positive Factors to Consider,” or slide 13, the group mentions 5 factors supporting the
purchase of grapes, and although I agree with those factors, which include the
possibility of gaining new customers and reducing fixed cost per unit, I believe there are
a couple of other factors that can be considered to support the purchase of the
additional grapes, as seen below:
1. Potential increase in the market share with the additional grapes can be
looked at as an opportunity to block a competitor from purchasing the
grapes. One of the factors group 3 mentioned is the “possibility of becoming
a stronger market participant, by offering products distinct from those of
competitors.” Similarly, if additional grapes are purchased, not only is it
possible to create diverse products, but the overall increase in market share,
or the portion of the market controlled, will strengthen the company in
multiple ways. This supports the first factor stated in the slide, “possibility of
gaining new customers,” but also weakens the business of competitors if they
are unable to purchase their required grapes.
2. Harvest and Crushing is already compete, so rather than doing this, AVS can
focus time much more efficiently on making wine and keep the savings
associated with the harvesting, washing, crushing, and landfill fees.
In addition to the above positive factors, additional factors to reject the buying of
grapes can also be considered. In the slide titled “Negative Factors to Consider,” or slide
14, group 3 states 4 different factors. I strongly agree with the third bullet point, which
states, “Possibility that the quality of the grapes is inferior.” Though a few others can be
included:
1. AVS would lose a huge amount of control over the harvest and crush
process.
2. This purchase will also have to consider the fact that this can heavily effect
AVS’s current potential production and labor capacity. Moreover, more barrels
may need to be purchased in order to ferment other Chardonnay grapes.
3. Added risk when trusting in the reliability of the new supplier.
4. Potential issues of compliance with an increase in wine production and
distribution. In other words, hidden costs.
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There are two cases opinion from my classmates, could you give me constructive feedback for
each opinion.
At least 1 long paragraph

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Explanation & Answer:
2 Peer Responses

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accounting

sales revenue

Bridgestone Behavioral Health Center

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