Andrew Perry Dr. Ricketts MRKT 4330 Spring 2015 Janmar Coatings Out of all the industries in the U.S., the paint coatings industry is considered to be one with growth at a level that keeps up with rising inflation. It is a $16 billion dollar industry with one to two percent annual growth that is divided into three segments: architectural coatings, original equipment manufacturing (OEM) coatings, and special-purpose coatings. Architectural coatings account for 43% of the total industry dollar sales, and is estimated to be valued at more than $12 billion dollars for U.S. sales. About 50% of architectural coatings’ sales are brought in by DIY painters’ purchases. Professional painters’ purchases are accounted for about 25% of the dollar sales.
Delta has a high cost of equity ratio compared to its long term debt cost ratio. This is mainly because Delta has over 850 million shares of stock outstanding. Part II: Compute payback/NPV/IRR/MIRR Evaluate profitability of proposed new project and make recommendations The projected cash flows for the new route are as follows 1/: Year
Case Study 1 Springfield Express is a luxury passenger carrier in Texas. All seats are first class, and the following data are available: Number of seats per passenger train car 90 Average load factor (percentage of seats filled) 70% Average full passenger fare $ 160 Average variable cost per passenger $ 70 Fixed operating cost per month $3,150,000 a. What is the break-even point in passengers and revenues per month? Contribution Margin/Passenger = 160 -70 Contribution margin ratio = 160- 70/ 160 Break Even Points in Units = (Total Fixed Costs + Target Profit )/Contribution Margin Break-even for passengers: (3,150,000 + 0) / (160-70):35000 Break Even Points in Sales = (Total Fixed Costs + Target Profit )/Contribution Margin Ratio Break-even for revenues: (3,150,000 + 0)/ (90/160): $5,600,000 b. What is the break-even point in number of passenger train cars per month?
Which of the following internal control activities most likely would assure that all billed sales are correctly posted to the accounts receivable ledger? A. Daily sales summaries are compared to daily postings to the accounts receivable ledger. B. Each sales invoice is supported by a prenumbered shipping document.
New contribution margin = $70 Break-even point in passengers = fixed costs/contribution margin Passengers = 45,000 Train cars = 715 e) Springfield Express has experienced an increase in variable cost per passenger to $ 85 and an increase in total fixed cost to $ 3,600,000. The company has decided to raise the average fare to $ 205. If the tax rate is 30 percent, how many passengers per month are needed to generate an after-tax profit of $ 750,000? Before Tax Needed Profit = $1,071,428.57 Before Tax Needed Contribution Margin = $4,671,428.57 Contribution Margin per Customer = $120 Number of Customers Needed = 38,928.57 Whole Number of Customers Needed = 38,929
How does the performance of each company compare to the S&P 500? FedEx had the largest foreign presence in China, which included 11 weekly flights, twice as much as UPS. The performance of FedEx and UPS compared to the S&P 500 was drastic. Both companies exceeded the S&P between the period of October of 2003 and December of 2003, FedEx slightly above UPS. After December of 2003, both companies fell below S&P, and then increasing as the months continued on.
The world’s fortune 500 companies controlled an astounding 70% of the trade market, and 80% of foreign investment, and 30% of the (GDP), gross domestic product. 3,400 billion of the world assets controlled by the largest 100 companies with 40% owned in other major countries. In the past it was statistically known that 70% of the trade market with 80% investments, and 40% in off shore accounts was controlled by these multinational corporations, drawing an excessive rates from the U.S. and the majority of wealth in other non U.S. regions. Local cultures of third world countries are stratified into various areas. These countries are open to new ways of proficiencies (e.g.)
* Benchmark Chart. * The Project Charter. * All Product Descriptions. * Preliminary and detailed Scope Statement. * Cost Rollup Estimate.
Easy jet is the largest air line in terms of passengers volume – ‘59 million’ (Easy Jet corporate media file, p.3) in UK and internationally across 30 countries with flight scheduled services of ‘600 routes’ as well as the fourth largest short-haul carrier in Europe with a market share of ‘8%’ (Easy jet annual report, 2012, p.12). In order to promote efficient service to customers, they introduce speed boarding that gives passenger’s greater choice over their seat arrangements. Furthermore, the volumes of passenger’s turnover have increased their financial performance to ‘£317 million’ (p.9) profit before tax and after tax of ‘£255 million’ (p.19). Their annual report can be assess at http://2012annualreport.easyjet.com/downloads/PDFs/Full_Annual_Report_2012.pdf and http://corporate.easyjet.com/~/media/Files/E/Easyjet-Plc-V2/pdf/content/press-info-kit.pdf a. Table: The vocabulary of strategy in Easy jet airline (2012 annual report) Term Definition Example (including why chosen and evidence Mission Overriding purpose in line with values or expectations of stakeholders Their mission statement is to ‘leverage cost advantage, leading market position, and brand to deliver point-to-point low fares with operational
“Each year, according to the U.S. Customs Service, 60 million people enter the United States on more than 675,000 commercial and private flights. Another 6 million come by sea and 370 million by land. In addition, 116 million vehicles cross the land borders with Canada and Mexico. More than 90,000 merchant and passenger ships dock at U.S. ports. These ships carry more than 9 million shipping containers and 400 million tons of cargo.