Overall, a rise in revenue and reduction in cost adds to CB’s profitability in Years 6 and 7. In reviewing Competition Bikes total selling expense, it was able to ascertain a huge 33% increase from Years 6 and 7 then managed to decrease that spending in Years 7 and 8 for about 14.9% (approximately $59,000) which is a strength for CB because they were managing their spending. For the Total General and Admin Expenses, Years 6 and 7 had a 20.4 % increase while the following years, 7
Customer purchases motor for $1,200. Then over 5 years or 60 mos usage costs are: 60*$200 = $12,000. Total cost is $13,200. Reengineer the 7.5hp for better starting torque: 1. Costs would include reengineering research and development, plus higher component costs since more advanced parts would be needed for more torque.
In an ever expanding market 19,000 sales is diminutive compared to the sales of the company’s competitors, thiswhich is due to slow production methods and longer lead times [new sentence], tThis has meant that although the market has grown, the company has seen a loss in market share. [try avoid using three clauses in a row like this] New managing director Will Butler-Adams is aware of this problem, his solution is a system of double shifts and slicker systems which he hopes will increase production to 50,000 bikes a year. Brompton Bicycle has just implemented a 1 million [unit?] production overhaul and a change of management. [good – you take a main point, expand on it and provide some data.
Concern #6: Other General and Admin. Expenses (costs for various administrative expenses) Competition Bikes, Inc. budgeted: $170,000 Again, this seems too low based on the increasing trend for Other General and Admin. Expenses between Years 6, 7, and 8 ($120,500; $158,000; and $170,000 respectively) (Horizontal Analysis). To keep up with inflation, a more realistic figure would be around $190,000. SECTION A2: Evaluate the flexible budget and its
If Tyrene Products wants to maintain the same CM ratio as last year, what selling price per skateboard must it charge next year to cover the increased labor costs? * 5. Refer to the original data. The company is considering the construction of a new, automated plant. The new plant would slash variable costs by 40%, but it would cause fixed costs to increase by 90%.
Competition among key players is rife on the global market with some competitors manufacturing up to 350,000 bicycles. The growth of BB is dependent on increased manufacturing and tapping into the global sales market which sees a 20% to 25% increase annually. BB are facing operation restraints(Smith, 2008). , which have seen the firm struggle to increase sales at the rate of the market share. Management feels that staffing changes and investing in new technology can increase production to 50,000 a year.
Company A decided to lower the price of product qwerty to $5.00. This change resulted in 250 product qwerty being purchased the next week resulting in a revenue increase of $250.00. Demand more than doubled as price went down. This dramatic change tells us the demand is elastic. If in this example less than 200 units would have been purchased the revenue would have been less than the revenue before the price change signifying that while demand increased when price went down, it did not increase enough to take the demand category out of inelastic demand.
What if the company only pays $140 per unit? How does this change the contribution towards profitability? Table B contains the same information as Table A, changing only the selling price per unit of Product C. Table B  According to Table B, Product C would have a smaller contribution margin percentage than Product B, but is still considerably higher than Product A. If you were the manager, would you accept this order? What considerations, other than financial would enter into your
IDS Financial Services What is the business issue facing Reed Saunders and IDS? IDS was facing new challenges as to how to maintain this 30 percent growth rate in the market place where the competition was increasing day by day. The consumer financial industry is growing very fast which creates new opportunities to be exploited. With this the competition is also growing as the competitors are becoming more and more aggressive in marketing and selling their products. Short Term Objective: Increase sales revenue by 30% over the next 3 years while reducing the cost of sales by 5% per year.
Just in the month of March it was reported 19 million dollars were raised up a total of 5 million more than the month before and seems to be continuing in this upward phase for now. So far Colorado has exceeded the original budget proposal almost doubling in tax revenue not to say it will continue in such a huge increase but seems to be steadily progressing. A side effect that Colorado was not exactly looking for was a decrease in crime since the legalization of marijuana. During the early months of this legalization reports show that the rate of violent crimes have decreased as well as a large decrease in incarcerations since this process has begun. Some have estimated 60 million dollars are spent enforcing legal prohibition each in year in Colorado before this amendment while estimating that they could save the minimum of 12 million dollars a year (Alliance, 2014).