The project would shut down the production for 45 days while the renovations are implemented. The price of polypropylene is GBP675 per ton. The tax rate required for this analysis is 30%. New assets can be depreciated over 15 years on an accelerated basis. Due to the increased production the work-in-process inventory (WIP-inventory) would need to increase by 3.0% of cost of goods.
Some analysts also believe that even when the economy improves, your average consumer will still look for ways to save money and continue to frequent the dollar discount stores. Finally it is the opinion of a third analyst that it is all dependent sustainable job creation. Not any job, but one with a livable income that can support a family. Without a living wage consumers will continue look for inexpensive ways to shop. RUNNING HEAD: Dollar General 3 The keys to Dollar General’s success have been location, product selection, and the decision to renovate vs building a new location.
Market Conditions Centralia, Missouri had food and beverage sales of $62.3 million in 2002, which was a 4.6 percent increase over the previous year. Superior and three other major competitors, Harrisons, Grand American, and Missouri Mart account for eighty-five percent of food sales in Centralia. 41.6 percent of Centralia’s population is between the ages of twenty-five and fifty-four. 30.6 percent of household income is between $15,000 and $34,999 and 39.6 percent is between $35,000, and $74,999. In 2002, Superior held an estimated twenty-three percent of the food sales market, Missouri Mart had twenty-seven percent, Harrison’s had twenty-two percent, and Grand American had thirteen percent.
Alden prefers its plants to operate at about the 85th percentile. With demand in Europe expected to rise by over fifty percent in the next ten years, the problem lies with current production facilities and management methods used. Alden will either need to ether build a new plant or expand operations at its current plants. Overview: The Netherlands plant was built in 1962 and has had six expansions since. It has employs outside fillers to keep up with production needs.
Unfortunately, student and parents rely on these lunches because they do not have the income to be able to afford either full-priced or homemade lunches. The only foreseeable way for American students to receive healthier lunches in their school cafeterias is if someone can create a solution to the cost problems. To fully understand the cost problem behind all of this, one must first understand that processed and pre-made foods are much less expensive than healthier, homemade alternatives. For example, if someone was going to make a lasagna dinner for their family they would be much more likely to want homemade lasagna because homemade is always better tasting and also healthier than pre-made frozen lasagna. However, when looking at the cost of both options,
Customer Analysis The total industrial consumption of cyano-acrylates which the new Bond-A-Matic 2000 would dispense was 265,000 pounds in FY 1978, expected to grow to about 335,000 pounds in FY 1979. Across 16 SIC categories, approximately 174,909 firms currently used cyano-acrylates (at a 15.5% market penetration.) 11% of CA users, i.e. approximately 19,240 firms used over 10 pounds of CAs per year, comprising at-least 75% of total current market. Assuming that growth in the CA segment stagnates, and that only heavy CA applicators would be interested in dispensing equipment the total market is still estimated at 19,240 users.
The problem facing the company is that whether it has to stop further production of the ‘complete meal’ product or establish a new consumer price of $ 6.85 per pack, in order to boost sales. Considerations and Analysis: In order to decide the course of action we may look at the following facts and considerations. Consumer Price 8.20 6.85 Retailer Price 5.72 4.78 Variable Cost 3.49 3.41 Volume Sales (in kgs) 30000 85000 Advertising Costs 0.3 0.3 Impact on Profit 41,400 90,950 As we can see, impact on profit is higher when 85000 kgs of complete meal is sold at $6.85/kg, rather than selling 30000 kgs at $ 8.20/kg. Now, another point to note is if production expenses are to be revised to $ 1.20/kg, then on a full cost basis, the complete meal would cost. Total unit cost (new) = Total unit cost (old) - Production expenses (old) + Production expenses (revised) Total unit cost (new) = 4.64 - 0.54 + 1.20 = $ 5.30 And Profit per unit would be = Retailer price - Total unit cost (new) = 4.78 - 5.30 = (-0.52) (i.e) there would be a loss of $ 0.52/kg, on a full cost basis, when the ‘complete meal is sold at $ 6.85.
Hanna economists have determined that the arc price elasticity for this microwave oven is 1.2. (a) | In 2011 Hanna is planning to lower the price of the microwave oven to $325. Forecast sales volume for 2011 assuming that all other things remain equal. | (b) | However, in checking with government economists, Hanna finds that per capita disposable income is expected to rise to $7,000 in 2011. In the past the company has observed an arc income elasticity of +2.5 for microwave ovens.
This leaves $165K available for other promotion. Let's call this "Plan B." Both plans are based on $79.5M in net sales in 2004, yielding a $300K increase in promotional dollars from the year prior. After thorough analysis, I recommend Plan B. The Analysis: Context/Climate – In 2003, total furniture industry sales were $23.9B.
PMT = (.1085/2)*1000=54.25 N = 60 R = 0.09/2=0.045 (or 4.5 for calculator purposes) FV = 1000 PV =? Answer: 1,190.90 b.What is the value of this bond 10 years after it was issued? PMT = (.1085/2)*1000=54.25 N = 40 R = 0.09/2=0.045 (or 4.5 for calculator purposes) FV = 1000 PV =? Answer: 1170.20 The price will decrease as approaching maturity since at maturity (just before expiration) it will be worth the par ($1,000) since this is a premium bond. 2.Suppose your company needs to raise $30 million and you want to issue 30-year bonds for this purpose.