This new specific purpose design with higher torque will also cost much more to manufacture, approx $665 per motor. It will be priced at $1045, leaving a smaller margin than any other motor DMC manufactures. 2. Assuming same retail price, customer would pay $1,045 plus usage costs of 60*$125 = $7,500 so grand total of $8,545 over 5 years. Persuade Bridges that test results are weighted too heavily on starting torque: 1.
Overall, a rise in revenue and reduction in cost adds to CB’s profitability in Years 6 and 7. In reviewing Competition Bikes total selling expense, it was able to ascertain a huge 33% increase from Years 6 and 7 then managed to decrease that spending in Years 7 and 8 for about 14.9% (approximately $59,000) which is a strength for CB because they were managing their spending. For the Total General and Admin Expenses, Years 6 and 7 had a 20.4 % increase while the following years, 7
Management feels that staffing changes and investing in new technology can increase production to 50,000 a year. Competitive pricing and maintaining high production standards is paramount to keeping ahead of the competition, particularly since 80% of bikes bicycles are outsourced. BB’s unwillingness to relocate leaves them at a disadvantage on keeping costs low (wages and overheads). However they outsource non-core elements of the manufacture and developing internal staff to carry out the skilled tasks i.e. machining and complex engineering locally which allows for consistency in quality.
budgeted: $220,000 This also seems too low based on the increasing trend for Executive Compensation between Years 6, 7, and 8 ($170,000; $220,000; and $220,000 respectively) (Horizontal Analysis). Again, to keep up with the cost of living and to motivate good executives to stay with the company, a more realistic figure would be approximately $270,000. Concern #5: Utilities (costs to run utilities) Competition Bikes, Inc. budgeted: $150,000 This seems too low based on the increasing trend for Utilities between Years 6, 7, and 8 ($130,000; $135,000; and $150,000 respectively) (Horizontal Analysis). To keep up with inflation, a more realistic figure would be around $165,000. Concern #6: Other General and Admin.
Question 2: There is a direct relationship between project Size and project profitability. While larger projects have a larger overhead cost they are more profitable long term. The largest 20 projects earned an average cost per project of $16,392.86 compared to the smallest 100 projects average cost per project of $10,721.43. We calculated these numbers by dividing total overhead cost allocated using the ABC method by the total number of projects. Question 3: According to the calculation and data analyzed in Question 2, the profit margin of largest 20 projects and smallest 100 projects are 44.01% and 1.86% respectively.
In an ever expanding market 19,000 sales is diminutive compared to the sales of the company’s competitors, thiswhich is due to slow production methods and longer lead times [new sentence], tThis has meant that although the market has grown, the company has seen a loss in market share. [try avoid using three clauses in a row like this] New managing director Will Butler-Adams is aware of this problem, his solution is a system of double shifts and slicker systems which he hopes will increase production to 50,000 bikes a year. Brompton Bicycle has just implemented a 1 million [unit?] production overhaul and a change of management. [good – you take a main point, expand on it and provide some data.
During 2009: The reserve is reduced by payment, but no addition; Higher mesothelioma settlement amounts (Est. 29k vs Act.34K); Higher legal expenses due to: 1. More aggressive approach and use of experts (many + verdicts); 2. martin, Smith, and Jones claims; 3. higher-than-normal volume of trial activity (over 15 trails); 3. Appeal costs for Smith and Jones claims; 4. Appeal costs for certain cases (through favorable outcomes).
Due to significant growth in values of nonmetals & coal production) * Nonmetallic mineral production (72.7% increase, to $20 billion) * Coal Production (56.9% increase from $2.7 to $4.3 billion) Metals: * Nickel (quantity production increase by 2.5%) * Zinc (quantity production increase by 5.9%) * Copper (quantity production increase by 0.7%) Nonmetals: * Sulphur (6.9%) 2. Which increased in production, but saw an overall decrease in value? * Nickel * Zinc 3. How could an increase in production be coupled with a decrease in value? The greater increase in production means more supply than is demanded, therefore the price will decrease.
Company A decided to lower the price of product qwerty to $5.00. This change resulted in 250 product qwerty being purchased the next week resulting in a revenue increase of $250.00. Demand more than doubled as price went down. This dramatic change tells us the demand is elastic. If in this example less than 200 units would have been purchased the revenue would have been less than the revenue before the price change signifying that while demand increased when price went down, it did not increase enough to take the demand category out of inelastic demand.
There were also risks involved with this decision. Creating a comprehensive advertising plan would cost Natureview $1.2 million per region per year. These were in addition to the trade promotion expenditures the company would need to make. “Natureview's sales, general, and administrative expenses (SG&A) would increase by $320,000 annually; $200,000 would be incremental SG&A for additions to sales staff required to manage the supermarket brokers in the two regions, and $120,000 would go towards additional marketing staff.” Option 2 had three main advantages as well. 32-oz cups currently generated a higher than average gross profit margin for Natureview, despite comprising a smaller unit and dollar share of the yorgurt market.