Southwest State Bank’s lower Expense Ratio is a result of lower interest expense and non-interest expense. The first factor on better controlling expense is interest expense. The total interest expense of Southwest State Bank is 0.24% lower versus peers, which include the interest on CD’s over $100M (0.83% less), Total deposits (1.14% less) and so on. But the most important parts are the source of funds from Money market deposit accounts and Time deposits under $100M. Money market deposit accounts which need to pay only a little interest to our depositors are 20.40% higher than peers, but Time deposits which need pay a lot interest are 14.84% lower than our peers.
Although market prices for precious metals fluctuated wildly for JM's competitors, JM's costs were tied mainly to mining and production costs which were stable and significantly lower. The company misrepresented the accuracy their production processes to their largest customer, GM. While the actual accuracy of the process attaching precious metal to the catalytic converter was close to 0.3%, JM said the accuracy was 3%. This allowed JM to safely put 97.5g instead of 100g of platinum on a set volume of catalytic converters and still meets the contract. At that time, platinum was $400 per ounce.
Reed’s executives attributed decline in sales in last five years to encroachments by superstores & warehouses. Because of Reed’s emphasis on the quality & service, customers perceive its prices to be high & same was endorsed by a study. Because of higher prices & its full service offerings, Reed’s average value per transaction was higher than the national supermarket average. There are many competitors in the Columbus market which had different positioning as compare to Reed supermarket. The details of major competitors are as follows, a) Delfina was considered high-end & had 9.58% market share b) Galaxy Chain had medium-end products, was poorly located & marginally profitable.
* Wages, advertising and rent total %23.1 of sales in the average business, leaving %1.9 of sales for property taxes, interest, utilities, depreciation and other expenses. While Rhodes saves 7.8% in rent due to his ownership of his property, these expenses total 9.8% of sales compared with the %1.9 industry average. Even if half the property tax can be expunged through sale of the unused lot, these expenses would still be %8.8 of sales. * Even with the relatively high expenses, Rhodes seems to be harmed most by his lackadaisical inventory management. His 2008 gross profit is 3.67% lower than the industry average (or 1.1% of sales).
1. Longform Printing of Medford, Massachusetts: As mentioned through initial discussions with Abcor’s prospective customers, some smaller manufacturing firms do not understand how the lower cost of materials will compensate over time the higher cost of the plate making equipment. However, even by offering a bid price of $14,000, which is $2,000 above the list price, the buyer’s initial cash outflow is still less than the machine’s list price of $12,000. As shown in Table 1.1, the buyer’s initial cash outflow would be $10,030. At this bid price, the buyer will be able to net to a positive cumulative cash flow of $413 by the fourth year (Table 1.1).
Store Sensitivities Even if this store has 18.1% lower sales than the forecasted level by R&P, it can achieve the accepted NPV of prototype, besides, construction cost can increase to near $10 million and still the project can achieve the expected NPV of the P04. If the stores sales decline by 10%, the project’s NPV will decrease by almost $4 millions which provides an accepted NPV of 13,340 K$ which is still above the accepted NPV of P04. Variance to prototype The Store NPV of $17,046K is $7,326K above Prototypical Store NPV. Mainly Cost of Land ($3,675K) and sales (3,603K) followed by positive benefits from real state tax are contributing to this positive variation form P04
It resulted in a wholesale cost of $9.20 per unit and a retail price of $18.50. Most Fisher Price toys were usually under $5.00 retail and other competitor merchandises were more expensive. The company knew that retailers and their current consumers would not support the higher marked product. When analyzing this situation, one must first look at the internal strengths. The Fisher Price brand is one of the best known brand names and it scored 75% on the brand awareness in the a survey.
Name: Arsalan Anwar Business level 3 Unit 1: P1 Introduction: In this assignment I will be selecting two contrasting business which are going to be Tesco and Oxfam. I will be writing a written report describing their purposes and ownership, to do this I’ll talk about what goods and services they offer and to whom they offer these to. Finally I’ll talk about where they operate and which industrial sector of the economy they operate in. Introduction of Tesco Tesco is a massive company with high revenues, it is also a public limited company (PLC) that means it has limited liability, the meaning of limited liability is that the investor cannot lose more than the amount he has invested within the company intern this means that the investor is not personally responsible for the debts of the company so linking this to Tesco it will mean that if Tesco goes into debt the investors are not responsible to pay it off. The main aim of Tesco is to make profit and the reason it will make profit is because it is a well know and established company which has been trading for many years.
Since the revenue generated from the member businesses is a function of size, the profit margin derived from a Bucket 1 business is significantly smaller than that derived from a Bucket 3 or 4 business. Therefore, the company changed the contract to help it realize more meaningful profit on its member businesses. The new contract is beneficial to the chamber because the modified sales commission system encourages more sales from Bucket 3 and 4 companies. However, it does not serve as a reasonable incentive for Noah to generate more sales. The time and effort put into Bucket 3 and 4 companies will be significantly more than that from Bucket 1 and 2 companies.
One, the bond performs and you make 35% more. Second, you can lose money because the paper doesn't perform to the full term. It is a riskier choice than par or premium because you’re banking on the fact that the company does well. However, the upside is much better. In my opinion, I believe the risk can be worth it because you can make a lot of money this way.