This means that as there is a substantial amount of excess supply prices should be cut heavily in order to increase the demand for this stock. If Monsoon ignore how much excess supply there is when deciding at what extent to cut prices they wouldn’t know how much supply there is to actually sell and therefore may try and sell it at too high a price, therefore causing demand to rise slower than it potentially could, should they discount the prices further Secondly, it is important to consider how quickly stock will go out of fashion. If some of the surplus clothing stays in fashion after the seasonal period, consumers are more likely to buy it at a higher price. This could affect the extent as to how much Monsoon cut prices because if the clothing goes out of fashion they will have to cut prices further, in order to sell the excess supply; getting rid of stock. It is important to consider how expensive the clothing was to buy in, in order to try and maximise
Janis Maraya March 16, 2015 ACC/543 Thomas Frank 4.16 1. Should Yoklic make or buy the subassemblies? Create a schedule that shows the total quantitative differences between the two alternatives. Manufacture Purchase Direct Materials 4 0 Direct Labour 30 0 Variable Overhead 15 0 Fixed Overhead 25 25 Purchase Cost 0 55 Total Unit Cost 74 80 Although the company would save $49 if it chose not to manufacture, the purchase of subassemblies would have a slight increase of $6. To save any money it would be better to manufacture than buy.
If a new business opens and has one or both of these products in stock, we would likely lose potential customers. If they follow a similar marketing plan, we could lose our client referrals to a business with more diverse products. We’ve seen tremendous growth this year, going from taking a $4000 loss in the first year, to a $30,000 profit this year. These risks are most likely not detrimental to our business, but could prevent a profit decrease due to
ECO 372 FINAL EXAM 1. Consider if the government instituted a 10% income tax surcharge. In terms of the AS/AD model this change should have a. shifted the AD curve to the left b. shifted the AD curve to the right c. made the AD curve flatter d. made AD curve steeper 2. If the depreciation of a country’s currency increases it aggregate expenditures by 20, the AD curve will a. shift right by more than 20 b. shift right by less than 20 c. shift right by exactly 20 d. not shift at all 3. Suppose that consumer spending is expected to decrease in the near future.
When the sales are increased for his division, bonuses could be paid to the managers. Frank Campbell reviewed the purchase orders received from November and December. He wanted to determine if any shipments to the customers before December 31 may increase their sales. The alternative way to report sales was to increase sales by sending out two shipments to customers. Although the customers only needed the shipment the following year, this would be a way to exceed the targeted budget.
(3) Price reduction of 20% -Pros: competitive the price with other company. Increase the sales in do-it-yourself market. -Cons: the quality will be questioned. Could decrease the sales. (4) Add additional sales reps at a direct cost of $60,000 each -Pros: could have professional motivation team could increase the sales.
When the buy-back price is more than or equal to $75, the buyer would purchase 18,000 units because the buyer could receive the largest profit in 18,000 units compared with other quantities. This decision doesn’t make sense, because the manufacture should focus on the profit, and his goal is to maximize the profit. From the trend analyzed above, the profit would decrease as the buy-back price increases when the order quantity is fixed, so to induce the buyer to purchase the
These numbers could show a very different story if not looked at carefully, as revenue, sales and goods increased; also administrative expenses went up (which could be considered natural) to a 25% representing an all time high. For Bob and Maggie to look at the profit and loss statements only would be dangerous, as there are a number of different things that must be considered in order to make a thorough analysis of the company. If one focuses on the company’s balance sheet (attached on this document on exhibit 1), one can notice the reality of Horniman Horticulture’s business. This documents shows a red flag, as it displays that cash for the company is decreasing at a very fast
Main Problem: How to increase the financial performance of Calyx Flowers through marketing and thus enlarging customer base. Main barriers to overcome are: • Competitors: The flower delivery market is fragmented and therefore heavily competitive; easier to get flowers from other competitors • Marketing channel: Promotion is done primarily through catalogs mainly to existing customers → Narrow perspective; Cut cost by shifting to online orders (which consist of 40%) II. Alternatives: 1) Attract new customers by increasing catalog mailings to potential buyers by 3mm • Pros: Expand size of potential customer base; Increase brand awareness; Provides more information for profile-based segmentation • Cons: Added cost (rental fee per name + production/mailing fee) involved; New people who receive catalogs might have aversion to the company
The amount of inactive collectors has increased to 12% from 0, one time users then they abandon it. Options Available to Sainsbury Nectar Program Continue with the existing Nectar program. Advantages of Nectar Program: • The program’s management is outsourced to LMUK, thereby allowing its partners to focus on core competencies. • Cost Reduction:Multiple Partners share the entire cost which in a way will reduce the cost • Expansion into various countries • Customer segmentation: based on past purchase behaviour in various outlets the customer preferences are noted. • Award more points to Sainsbury's' customers on product purchase.