It is the responsibility of Retail Banking to ensure that payment for expense is processed in the first instance and that secondly an adjustment allocation is charged back to both Commercial Banking and Financial Planning cost centres for the expense. The cost allocation basis that is utilised is calculated on the amount of floor space that is allocated to each department which also has a direct correlation to the number of full time equivalent staff. The cost allocation is agreed prior to each financial year by the stakeholders namely the Heads of Retail Banking, Commercial Banking and Financial Planning and is reviewed annually. Once agreement has been reached the outcome is communicated to relevant parties prior to the reporting period. The allocation of space and staff numbers for the reporting period 1st July 2013 to 30th June 2014 are detailed below.
The first step in helping Prescott was to calculate a new cost of capital—as the one used by WPC was 10 years old. I used the weighted average cost of capital equation to calculate a new WACC of 9.97%. My calculations are and assumptions are shown in further detail in the attached sheets. Next, I had to generate the free cash flows for years 2007-2013 using Prescott’s given assumptions. * $18 M purchase price * $1.8 M selling price * Investment in PPE (2007) was $16 M * Investment in PPE (2008) was $2 M * $4 M in Sales (2008) * $10 M in Sales (2009-2013) * COGS: 75% of Sales * SG&A: 5% of Sales * $2 M Operating Savings (2008) * $3.5 M Operating Savings (2009-2013) * Depreciation was on a straight-line basis for 6 years beginning in 2008 * $18 M / 6 years = $3 M * 40% tax rate * NWC: 10% of Sales * Salvage value was zero * The FCF per year was determined using the following: * Net Income + Depreciation Expense - ∆ Net Working Capital + Investment in PPE After generating the FCF for each year, I had to solve for NPV and IRR to value the investment.
Companies with smaller profit margins must create a larger following of loyal customers because they need to rely on the quantity of customers, not the markup, for their profits. Caffe Umbria will charge $2.00 per 16oz cup of coffee to keep it below the national average cost while not compromising quality of the product. Packaging needs to stay small for purchase in store and online for home brewers so that the customer still gets the same fresh taste at home as they do in the cafes and extra care should be taken to ensure the freshness of the coffee, safety of the packaging, and the shrink in the packaging process. The lower the costs in shrink of packaging and
Answer: 2 6. What is the part number, description, and price for the least expensive part in the database? Answer: PART_NUM | DESCRIPTION | PRICE | AT94 | Iron | $24.95 | 7. For each order, list the order number, order date, customer number, and customer name. Answer: ORDER_NUM | ORDER_DATE | CUSTOMER_NUM | CUSTOMER_NAME | 21608 | 10/20/2007 | 148 | Al's Appliance and Sport | 21610 | 10/20/2007 | 356 | Ferguson's | 21613 | 10/21/2007 | 408 | The Everything Shop | 21614 | 10/21/2007 | 282 | Brookings Direct | 21617 | 10/23/2007 | 608 | Johnson's Department Store | 21619 | 10/23/2007 | 148 | Al's Appliance and Sport | 21623 | 10/23/2007 | 608 | Johnson's Department Store | 8.
In a word processing program, write a brief description/explanation of how you implemented each component of the model. Write 1-2 paragraphs for each component of the model (days-to-repair; interval between breakdowns; lost revenue; putting it together). The amount of revenue lost can be found by looking at how many days it takes to repair, and then multiplying that number by the amount of customers you may have received on a given day multiplied by the amount of copies they produced. The time between breakdowns will tell you how often this occurs, and the sum in weeks is not to exceed 52 (since there are 52 weeks in year. 6.
Margin of Safety (DOLLARS) Budgeted – break even = 100,000-62500= 37500 (Percentage) 37.500/100.000= 37.5% (Units) 37500/250= 150 3.Compute the company’s margin of safety in units assuming the proposal is accepted. Margin of Safety (Dollars) 137500-58929= 78571 (Units) 78571/275= 286 4. Compute the increase or decrease in profit assuming the proposal is accepted, show the contribution Income Statement for current and proposed. Present Proposed Sales 100,000 137500 Variable expense 64000 80000 CM 36000 57500 Fixed cost 22500 244750 Net income 13500 32750 difference: 19250 4a. What is the operating leverage for the current and proposed?
Assignment #2- Internal Analysis of JCPenney J. C. Penney (JCP) has remained one of the most valued retailers in the United States due to its careful attention to customers' needs, in the past few years J. C. Penney has implemented a new pricing policy in hopes of keeping their edge. When JC Penney replaced its longstanding promotional pricing strategy with an everyday low pricing strategy, sales plummeted. The store typically attracted bargain-aware customers, but these consumers did not immediately associate the chain's new pricing strategy with low price and good value, despite the fact that it was heavily marketed in these terms. Still the company maintains a Price/Earnings ratio of 52, above the average retail industry P/E ratio of 42.7 and above the S&P 500 P/E ratio of 17.7. The company is leaving no stone unturned to become cost resilient, and is focusing on closing underperforming stores and exiting its catalog business.
Strategic planning is crucial at this stage and there are tools available to help any business perform the analysis needed to succeed. Kudler Fine Foods is an upscale food store specializing in foods and services that appeal to a niche market; gourmet chefs and gourmet chefs in training. The firm had good initial success with its first two stores, but its third store is suffering with lower than expected sales. The firm wishes to continue expansion and increase profitable growth. Before moving forward the company’s owner, Kathy Kudler, needs to understand her company fully and have accurate knowledge about the firm’s internal and external environment.
The final goal is to increase revenue, attract more new customers, to regain its competitiveness in the market. Although Jade Asian Restaurant has received press accolades, their business has issues need to be addressed immediately. Jade Asian Restaurant had been a popular Chinese cuisine destination for the first couple years after its opening. In the past few years, the popularity has decreased due to its inefficiency in service and food quality. In order to reach its goal of regaining the competitiveness in the industry, a restaurant management system must be implemented.
5, 6) Lima Parts, Inc., shows the following overhead information for the current period: Actual overhead incurred $ 29,400 2/3 of which is variable Budgeted fixed overhead $ 8,640 per hour Standard variable overhead rate per direct labor-hour $ 9.00 Standard hours allowed for actual production 2,350 hours Actual labor-hours used 2,200 hours ________________________________________ Required: What are the variable overhead price and efficiency variances and fixed overhead price variance? (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.) Amounts Variable overhead: Price variance $ (0%) (0%) Efficiency variance $ (0%) (0%) Fixed overhead: Price variance $ (0%) (0%) ________________________________________ P16-45 Overhead Variances (L.O.