Cost-Control Efforts
Management had put in place a strong cost-control program to ensure that Sunbeam would have a cost structure that allowed it to be competitive in global markets. A key initiative for 1998 was to increase the outsourcing of parts and components, thereby shifting from the current make/buy ratio of approximately 70/30 to one of 50/50. Exhibits 6 and 7 present the company's financial statements for the period 1995-97.