The company traditionally focused on outbound sales and marketing initiatives competing on the basis of amenities, prices and services. Some key statistics of the company are as follows: a. 39% stay once a week or more b. 65.7% have their trip paid for by their company c. 68.9% stay alone d. 73% were repeat customers e. 36.6% stayed based on price f. 40.9% stayed because they’d been there before g. 79.8% stay for business travel h. 14.2% stay for leisure II. Case Problem/Opportunity The Amber Inn & Suites, Inc. has been generating negative profits.
Gary Luisi Home Depot Financial Mgt 317 Western Int. University Professor Schlagheck April 21, 2013 Home Depot is the company I have chosen to follow for the next several weeks. I chose Home Depot for a few reasons. Home Depot has stores in all 50 states, District of Columbia, Puerto Rico, and US Virgin Islands, 10 Canadian provinces and also in Mexico. With construction of new homes still not picking up people have turned to remodeling their existing homes.
Henry Clements is a friend of yours who has a car rental agency in a major metropolitan area. Although his is an independent company, Henry works closely with three other independent companies in the metro area. They share information and each week they forecast the number of cars each will need the following week. Then, if needed, they will transfer cars between location on Sunday when none of the agencies are open. If they have to go and get a car during the week, it will cost $75 per car, considering the lost time and good will of making the customer wait.
We then fast forward in time and learn about Miss Amelia’s ten day marriage, but we don’t find out any details about this. We then go back to before Miss Amelia was married and we get a little more insight on how she spent her days before the cafe came about. After this passage, we move forward in time again, and this is when we meet Cousin Lymon, or “Hunchback”. He would eventually convince Miss Amelia to convert her store into the cafe. After the opening of the cafe, the story directs us four years into the future, when the cafe is doing great business, and people are starting to realize that Miss Amelia is in love with Cousin Lymon.
In the case of Windham, this continuous subsidizing has forced them to maximize our line of credit from the bank, straining our relationship with them The HHC set out strict guidelines requiring all of its franchises to have a standard restaurant design, menu, suppliers, uniforms and signage. Based on our sales projections, they built the larger format restaurant and took out an $881,000 loan to cover all restaurant costs. In the first year of operations, Windham’s average monthly sales were only 79 per cent of those of the local area of dominant influence. This percentage dropped to 75 per cent in 2001. Unfortunately, Windham has not yet shown an improvement in sales in 2001.
It is almost seems like a vacation in itself for Phil. Instead of relaxing on the weekend, Phil chooses a new wardrobe at work for relaxation. Goodman even gives the exact time of Phil’s death, as though it were just part of his everyday, planned routine. She writes, “So when he finally worked himself to death, at precisely 3a.m. Sunday morning, no one was really surprised” (77-79).
Jerry estimated that he needed $40,000/month during the “bathtub” period to support and maintain his key people. Fortunately, the bathtub period fell over the holiday season when the plant is shut down for 17 days and employees typically take time off. He revised his estimate to $125,000 for the entire bathtub period (approximately $36,215/month). With this estimate in mind, Jerry told the team members to “tighten their belts” for the remainder of the Scott Project in order to establish a $125,000 management reserve. The team understood.
Robin Chase developed the first plan to have customers become members with initial payments of $625 ($325 of which was application fee and security deposit) and additional payments of $1.50 per hour and $0.40 per mile. By May 2000 after further research and consumer feedback Chase changed to a tiered pricing model. The membership fee decreased from $300 to $75 (totaling to $400 with application fee and security deposit). This $225 decrease was due to consumer research regarding resistance to membership at the higher price point. In addition hourly charges increased from $1.50 per hour to $4.50 - $7.50 an hour with a max daily rate of $44.
C. accounting profits produced. D. increase in total sales produced. 3. Assume your firm has an unused machine that originally cost $75,000, has a book value of $20,000, and is currently worth $25,000. Ignoring taxes, the correct opportunity cost for this machine in capital budgeting decisions is: A.
$30,000 of depreciation on the equipment used to manufacture the parts. c. The supervisor's salary of $25,000, which would be avoided if the part is purchased from an outside supplier. d. $15,000 in rent from leasing the production space to another company if the part is purchased from an outside supplier. status: correct (1.0) correct: b your answer: b feedback: Correct. ________________________________________ 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.