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Unread 04-02-2016, 10:47 PM   #1
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"The Remington Arms Co. Would of most likely needed a much higher contribution margin to cover overhead and be "profitable"

That's an excellent point. If Remington hung their overhead rate on the Parker works, it could turn a profitable factory into a money loser with the stroke of a pen.

People love to blame lawyers but I'll take a lawyer any day over an accountant!
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Unread 04-02-2016, 11:03 PM   #2
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Quote:
Originally Posted by greg conomos View Post
If Remington hung their overhead rate on the Parker works, it could turn a profitable factory into a money loser with the stroke of a pen.

That's exactly what Remington did.... Instead of integrating the Parker Gun Works into the Remington gun production facility when they moved the Parker Gun operation to Illion, then, (aparantly partially because of 'bad blood' on the factory floor) the Parker Gun Works was set up in its own facility with all its own machinery and personnel... which probably sent the operation's 'overhead' far above and beyond what they had anticipated.
The worst years of the Depression were from 1929 through about '34. By the time he Parker Gun Works was moved to Illion in '37 the economy had begun to improve somewhat. But then we were drawn into the war....






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