However, this situation would make the company incur more loss next year, which is about negative $ 293,586. In the mean time, Barb Shepard, the company’s owner, wants to sell the company soon, and she knows a purchase price would be determined by three main factors: the absolute level of profits, the rate of growth in profits, and future potential growth in the market. Barb Shepard also wants to reduce bank debts as soon as possible. Therefore, the company needs new strategic initiatives very much to improve operating profitability and move forward next year. Each of three vice presidents has rendered a separate and distinct strategic initiative, and they are “Introduce a new product”, “Increase promotion”, and “Raise prices and cut costs” respectively.
Operating efficiency was improved using just-in-time and lean operations techniques. I used sales predictions to estimate how many units a sales person would be able to sell each day. This number determined how many units were to be produced each day. Therefore, limiting the number of inventory left over at the end of the quarter, and in turn eliminating waste. I also used marketing surveys to determine what customers wanted in the products RIE Tech was producing.
The company is “slashing prices up to 40% with to keep them that way year round” (Heller). With the decreasing price, J.C Penney could reach its customers’ expectation and is hopeful to invent its new brands to its market. Meanwhile, the company set the “best price” every month to offer customers more predictable pricing. According to Johnson, “customers will love shopping when it is convenient for them, rather than when it is expedient for us” (Johnson). Johnson, who ever built the world’s most powerful brands – Apple, considered from the angle of its customers to build up a
In groups of three or four, make a list of possible reasons that the actual ending inventory might not agree with the ending inventory according to a computer system. Jason Tierro, an inventory Jason Tierro, an inventory clerk at Lexmar Company, is responsible for taking a physical count of the goods on hand at the end of the year. He has been performing this duty for several years. This year, Jason was very busy due to a shortage of personnel at the company, so he decided to just estimate the amount of ending inventory instead of doing an accurate count. He reasoned that he could come very close to the true amount because of his past experience working with inventory.
Initially, for at least the first few months, there will be a lag between what we have available and what the customers or clients know we stock. This could cause decreased inquiries or sales of the specific new models until updated marketing materials are distributed and the website is updated. Another potential risk is the longevity, or “shelf-life” of both the pediatric and bariatric models. We expect there to be increased “wear and tear” for both models, which could reduce the rentable time by 5-10 weeks, decreasing the profit for the rental models. Lastly, increased inventory requires more space.
Belot Enterprises Case 1. Auditor David Robinson’s suggested compromise on the review of the Belot’s interim financial report (second quarter-from April1 through June 30) is appropriate. Because Belot Company has been struggled to survive in a mature and intensely competitive industry for several years, and the company has planned to implement an organizational Nail the Number campaign from April1 through June 30 to boost its quarterly operating income by 100 percent so that Belot Company will not be eliminated by its parent company, Helterbrand. During those three months, Belot Company has made many changes on its operation activities, such as products line, sales program, cost-cutting initiatives, and its accounting measurement, etc. Belot’s accounting general manager, Zachariah Crabtree decided to change the accounting method from “conservatism” to “precise point estimate” to record the company’s major discretionary accruals during its second quarter financial report; therefore, the company operating income dramatically has been increased 140 percent higher than the second quarter of prior year.
compete against them for textile industry. As a result, Aurora had opportunity to keep its operation by cutting approximately four million dollars of SG&A expenses since 2000. Finally, customer preferences leaded textile manufacturers to produce high-quality products with the minimum defects. Because of these reasons, Aurora is considering whether or not they will buy the Zinser 351 by replacing existing machine. How has Aurora Textile performed over the past four years?
However, that is an extra 2’ that require you to put away by hand after each use. This can lower productivity times for the housekeeping department. Warranty Both The Hoover and Kenmore vacuums offer a 2 year warranty on their vacuums. The Dyson offers a 5 year warranty which will have a direct impact on the final review. This gives the resort an additional 3 years to ensure all parts are functional.
A major issue that Custom Molds is facing is adapting to the changing needs of their customers. For example, the chart on molds produced provided in the case shows that orders for multiple parts have decreased over the past several years. This is a problem for Custom Molds because it would be much easier for the company to produce several identical molds rather than an increasing number of individual, unique molds. Another issue that the company is facing is that they have slow process and delivery of their products. The production process of each mold can take from two to four weeks, and the company is giving a lead-time of nine weeks.
PSD offers competitive pay and that allows its employees to get an annual pay raise for the first three years based on their advancement in steps. They do not offer overtime pay. Most employees start out at the same step level and should get an annual pay increase. With the government imposing a two year federal freeze many federal employees are losing a lot of benefits and seeking employment elsewhere. The freeze will only apply