By the morning of the third day, the Cobbs were starting to question the wisdom of launching the product at all; they had already invested a lot of time and money in the product, and without any substantial sales, there seemed little reason to continue. When Cabela’s expressed interest in the product, everything changed. At least one leading retailer was prepared to carry the product. For Russ, the opportunity was a clear win; while Cabela’s would need a retail price of $7.99, the product would be in the market and selling. Matt, however, wondered if the price was too
They are not adding additional staff, equipment, or software so spreading the resources out could cause the quality of the existing products to suffer. The current crop of products and services are what made the company successful in the first place, there is no guarantee that the new products will be
It is well known that whether a product is profitable or not depends directly on the demand and supply relationship in the districts. Since the author fails to account for the demand situation of healthy food in P, it is entirely possible that the demand of healthy food in P is not large enough for a new store. The current demand might be well met by other sources already, instead of a new store. For that matter, a new store would be surplus in P. In addition, even assuming the demand and supply relationship is broken since more healthy food is needed, there is no evidence that Natural’s Way would be P’s choice. The author fails to take other opponents of Natural’s Way into consideration.
One of our major goals this year is to avoid expenses. That is why there is a 10 percent reduction in personnel and administration cost. In order for us to be effective cost must be avoided. Advertising was not chosen due to the cap put onto the publications/public information expenses. We cannot afford and will not be approved for extra advertising without research that proves that this advertising will increase revenues more than the cost.
Because the assumption does not require for the growth to be at the same constant every year, instead it states that the best estimate of growth for any future year is the expected growth rate from the previous year. It is just very unreasonable to assume that the growth rate will be constant every year. Companies just cannot maintain the same rate earning every year; sure they can for a few years in a row but not forever. If they do there could be a suspicion of fraud. 2.
a. Sales exceeded the budget by 10.7% ($75,000 ÷ $700,000), while cost of merchandise increased by 22.9% and salaries increased by only 11.4%. Thus, the investigation should focus on cost of merchandise since a 22.9% increase is disproportionate to the increase in sales. b. Electricity would not be a controllable cost for the manager of sporting goods, and it is doubtful that including it on a performance report for sporting goods would be
Based on ASC 810-10-25-45-47 LeaseMed does not have sufficient equity to finance its activities without additional subordinated financial support, because it does not demonstrate the ability to finance its activities with no additional financing support, its equity at risk are 100% of total assets (total assets and total equity = $1,000,000 respectively, expected losses exceeds $1,000,000). Moreover, LeaseMed cannot issue investment grade debt. Based on the above reasons Lease Med does not sufficient equity to finance its activities and it should be considered a VIE. 3. On the basis of response to the previous question, which consolidation model should DeviceCOo and Pharmador apply to LeaseMed ?
Since Smithton’s basis or tax schedule would not be change. Mr. Jones can’t change the financial period to end on December 31. If Mr. Jones issues debt in Johnson Services it would increase the debt to equity ratio substantially and become unattractive to future investors because it would appear to be heavily financed by debt. It would also increase the fact that it is already operating at substantial
In result this would counteract any of the preconceived profits from the pipeline. On top of this all, Enbridge did not include the major cost of importing condensate, which is a vital necessity in order to dilute the bitumen so that it will flow through the pipeline. With a long term forecast given to investors, it was also concluded that there would be 500,000 less barrels per day by the year of
They had predicted a loss for the new facility within the budget but they were not able to predict the economic downturn. The new facility is located in an area where individuals have better insurance and younger population base so, the speculation is the revenue generated would be more profitable, unlike the facilities in Seattle that have a higher population on Medicare and Medicaid. (Facts and Figures,