Introduction Easy jet strategy and vocabulary Easy jet is a low cost, efficient, and flexible airline that is been driven by scale and cost advantage, high assets utilization, and efficient capital structure. ‘Sir Stelios Hahi-Loannou founded it in 1995’ (Easy jet corporate media file, p.3) and had its first flight from London Luton to Edinburgh and Glasgow. It has headquartered at London Luton airport with about ‘8446’ employee through UK and Europe. They have 3000 short-haul aircraft in operation in Europe, which were centre on ‘pan European primary airports’ that delivers friendly services, efficient and at low cost (p.6) to their customers. 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).
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
The total amount is $1,517,391 |13. Tuttle Buildings Inc. has decided to go public by selling $6,000,000 of new common stock. Its | |investment bankers agreed to take a smaller fee now (6% of gross proceeds versus their normal 10%) in exchange for a 1 year option to | |purchase an additional 250,000 shares at $7.00 per share. The | |Investment bankers expect to exercise the option and purchase the 250,000 shares in exactly one year, when the stock price is forecasted to| |be $6.50 per share. However, there is a chance that the stock | |price will actually be $12.00 per share one year from now.
MINI CASE – Chapter 3 Ed Cowan was recently hired by Tuxedo Air Inc. to assist the organization with its financial planning and to evaluate the organization's performance. Ed graduated from university six years ago with a finance degree. He has been employed in the finance department of a TSX100 company since then. Tuxedo Air was founded 12 years ago by friends Mark Taylor and Jack Rodwell. The organization manufactured and sold light airplanes over this period, and its products have received high reviews for safety and reliability.
Jeevanandini Balasubramaniam MBA 651 Wednesday’s 7.15 p.m. to 9.45 p.m. Group # 5 Jeevanandini Balasubramaniam MBA 651 Wednesday’s 7.15 p.m. to 9.45 p.m. Group # 5 A350XWB: Airbus’s answer to Boeing’s Dreamliner A350XWB: Airbus’s answer to Boeing’s Dreamliner Question 5: How have sales for Airbus and Boeing compared leading up to the time of the case? Specifically what has occurred since the announcement by Boeing of the development of the 787? How do the prices of the 787, A 350 and A 350 XWB compare? Where do you believe the fall in the kinked demand curve? What does this imply for the future success of each product?
The firm will be able to retire the loan of $400,000 on June 30, 2009. Sunspot Skis can generate sufficient internal funds from profit, depreciation, and liquidation of inventory and reduction of collection period for account receivable. Sunspot Skis has longer Average collection period of 49.6 days, comparing to the industry average of 32 days.This shows that Sunspot Skis made a lot of sale on credit. The firm can generate fund by reducing its Account Receivable and collection period in the year 2009. Average collection period = ( 365 * AR ) / Credit Sale Expected Sale Year 2009 = 2,900,000 Account Receivable (Year 2009) = 32* 2,900,000 / 365 = 254,246 Account Receivable (Year 2008) = 388,000 Additional internal fund = 388,000 – 254,246 = 133,754 Sunspot Skis also holds too much inventory ( $826,200) that leads to low Inventory utilization ration 3.5, whereas the industry average is 7.
This was the longest uninterrupted period of expansion since the government started keeping track in 1854.During this time fifteen million new jobs were created and just under twenty trillion dollars worth of good and services were produced. President Reagan inflated the DOD budget. He wanted the Americans to be ready for a war just in case if one ever happened. President Regan also had plains for what he called the “star Wars.” His Plain was to make some kind of shield that would protect us from nuclear missiles. President Reagan also deregulated the lending restrictions for savings and loans.
In 2008, the souring economy hit Whole Foods rather hard. Sales increases at Whole Foods stores open at least one year rose only 0.8 percent in 2008 versus 8.2 percent in the previous year. In August of 2008, Whole Foods announced that planned new store openings for 2009 would be reduced. Whole Foods had to back out of signed leases or revise the lease terms of 70 new stores that had been scheduled to open in 2009 and 2010. Whole Foods recently arranges to sell $425 million of preferred stock to private equity investors, which equated to an ownership interest of 17 percent in the event the private equity investors exercised rights to convert their preferred stock into common
What about the enormous salaries some of the higher ranked employees make? For example, one company’s CEO gets paid a whopping $20+ million a year. I don’t care where a person stands in the rankings of company, there’s no reason for any one person to make that much money. The average income of the American working class is between $50,000 and $150,000 per year, it would take a person more than one hundred years to make $20 million. Along with the massive salaries that these CEOs receive, they also have their own private jets, which happened to be the means of transportation they chose to show up in for their meeting with the U.S. Budget Committee.
VW has likewise propelled an inner request. With VW reviewing just about 500,000 autos in the only us, it has put aside €6.5bn (£4.7bn) to take care of expenses. The carmaker has said it will start reviewing autos in January. In any case, that is unrealistic to be the end of the monetary effect. The EPA has the ability to fine an organization up to $37,500 for every vehicle that breaks benchmarks - a greatest fine of about $18bn.