________________________________________ 2 The following information pertains to the Norfolk Company's three products: Product B's production is increased to 700 units per year but B's selling price on all units of B is reduced to $8.00. Assuming everything else remains the same as the original data, annual profits will: a. decrease by $400. b. increase by $700. c. decrease by $1,800. d. increase by $1,400.
Using these figures and assuming that both heavy and medium users (those buying between 1-9 pounds of cyano-acrylates per year) are potential customers; the maximum size of this market is estimated at 81,000 purchases. At 157.50 per unit, even with 100% penetration the market will not be worth more than $12.77 million in sales, with a more realistic estimate being $ 4 million in sales. The disparate nature of usage patterns across firms make it difficult to identify critical variables that can form the basis of segmenting the market. Possible ways to segment customers is on the basis of nature of the firm (small firm vs. large firm); sector of business (which industrial markets to target), current usage behavior (heavy CA usage vs low CA usage), nature of work (OEM vs MRO), and brand loyalty (SuperBonder usage vs competitors). Given that data about
Running Head: Superior Supermarkets Superior Supermarkets Davenport University MKTG 610 Date Case Synopsis A quarterly review by Hall Consolidated is scheduled to discuss performance in District III. District III includes fifteen Superior Supermarkets located in Centralia, Missouri. The district manager for these stores, Randall Johnson, has requested that these three locations implement an everyday low pricing strategy since these stores are the highest priced supermarkets in the Centralia market. His is concerned that because of increasing consumer price consciousness, they may lose market share. Centralia store’s sales have been below budget for the last quarter of 2002 and this first quarter of 2003.
In the past the company has observed an arc income elasticity of +2.5 for microwave ovens. Forecast 2011 sales given that the price is reduces to $325 and that per capita disposable income increases to $7,000. Assume that the price and income effects are independent and additive. | 2. Lenny's, a national restaurant chain, conducted a study of the factors affecting demand (sales).
[pic] [pic] Leverage goes down because we are further away from the break-even point, thus the firm is operating on a larger profit base and leverage is reduced. d. If Healthy Foods has an annual interest expense of $10,000, calculate the degree of financial leverage at both 20,000 and 25,000 bags. a. First determine the profit or loss (EBIT) at 20,000 bags. As indicated in part b, the profit (EBIT) at 25,000 bags is $45,000: | | | | |20,000 bags | | | | |Sales @ $10 per box |$200,000
Refer to situation anaylsis 2. Internal Marketing Audit Operating Results Total group sales have reduced by £225.9m to £923.2m, plus a 12.1 decline in sales. “An adverse movement in the Hong Kong dollar, offset by favourable movements in the Euro and Singapore dollar, impacted sales by £0.4m and operating proﬁt by £nil.”(HMVgroup, 2012). Sales lessened from £1,102.2m to £873.1m and the costs afore tax and special items were £16.2m, which is down from a proﬁt of £16.2m in the previous period. Furthermore, significant charges of withdrawn operation of £33.5m were sustained in the year.
2) Suppose the selling price of outsiders drops another $15 to $185. Should P purchase from outsiders? 3) Suppose (disregarding Requirement 2) that S could modify the component at an additional variable cost of $10 per unit and sell the 2,000 units to other customers for $225. Would the entire company then benefit if P purchased the 2,000 components from outsiders at $200 per unit? 4) Suppose the internal facilities could be assigned to other production operations that would otherwise require additional annual outlays of $29,000.
So we can interpret that in the year 2013, the risk of the firm is getting lower as the ratio goes down. As the definition says that higher the ratio, greater the ability of the firm to pay its bills. This tells that Coca-Cola is not really improving their liquidity and efficiency, because their current ratio dropped from the previous year. As of September 29, 2013, and September 30, 2012, the Company had a weighted average interest rate of 6.1%, 5.9% and 6.1%, respectively, for its outstanding debt and capital lease obligations. The Company’s overall weighted average interest rate on its debt and capital lease obligations was 5.8% for YTD 2013 compared to 6.1% for YTD 2012.