A couple of points to look at include the fact that utility expense increased 11% year over year. Considering the fact that production, sales and selling expenses were down this could indicate inefficiency in the company. The company also significantly cut back in research and development. In the previous period this was one of the fastest growing expenses. This may have been for any number of reasons, however if this was cut simply to conserve cash it could result in slower growth in the long term.
When interest rates rise, the casino industry may go down because people will not be able to spend money for leisure activities. With high interest rates, consumers have less money to spend and less motivation to borrow (Northrop Grumman, 2009). On the other hand, when interest rates decline, businesses find it easier to finance expansion and people find it easier to spend money on leisure activities and nice automobiles. High interest rates depreciate the value of a dollar, giving consumers less purchasing power. This means consumers have to pay more for a car when
(3) Price reduction of 20% -Pros: competitive the price with other company. Increase the sales in do-it-yourself market. -Cons: the quality will be questioned. Could decrease the sales. (4) Add additional sales reps at a direct cost of $60,000 each -Pros: could have professional motivation team could increase the sales.
Poor sales performance and relatively high cost of sales have contributed to the profit margins to slip to one third of other hand tool manufacturers. It also comes clear that Robertson’s effort to provide products to every market segment lowers the overall efficiency of the company. By cutting non-marginal products from the company’s range of products, cost of sales has a potential of being reduced from 69% to 65% of sales. Further on, in case of an acquisition with Robertson, Monmouth Inc. could reduce Robertson’s sales force by implementing all sales functions into the existing hand tool lines. Sales and administrative expenses are expected to be lowered by 3 per cent (from 22% to 19%) if any duplications were removed.
According to Gallup, the lack of good jobs in America is a greater problem than the inefficient healthcare costs, runaway government spending, and even global terrorism. The lack of good jobs is a poignant crisis in America today, and is making our nation bankrupt. When GDP is up, there are more jobs in a nation, resulting in better welfare. This is why GDP is so important to the welfare of its citizens. GDP is the sum of all goods and services produced in a country during a year (Ferrell).
If the company continues to loose billions of dollars year after year adjustments need to be made somewhere, so the concentration should be put in the plants that are successful and slow production in the lagging plants or just simply close down. Second I would choose to reduce the SUV and truck lines because of the high gas prices throughout the country simply because the smaller cars would be more gas efficient, more cost efficient, and a lot of money being lost through the lack of being able to sell the expensive SUV’s which also doubles in cost to fill up and drive on a daily basis. Most Americans are buying the smaller cars because of the recession or the public opinion that we are in a recession. Third, would be to go ahead and sell the premium automobile group to somebody that would be able to make use and profit off of the lack of sales year after year. Cars like Jaguar and especially Aston Martins which are one of the most expensive cars in the world, don’t really sell on a large scale in the US except for the wealthy percentage of the population, so selling the premium automobile group should be a good business decision especially since the PAG group doesn’t fit the way Ford intended their business to be operated.
In the article, Americans’ trend line on gasoline: Use less, spend more, Mark Clayton discusses the trends seen in oil consumption and gas prices. Oil consumption has fallen 9% since 2005 and due to better fuel economy in new cars, consumers are enjoying a much higher gas mileage. They also cite that there has been an increase in domestic oil production that has lead to a drop of oil imports since 2005 of almost 31%. The above considerations have not decreased the amount that Americans are paying for gasoline, the truth is that they are paying more for gasoline than ever before (Clayton, 2012, p.1). Utility is defined as “the pleasure of satisfcation that people get from doing or conuming something (book, p. 231).
More stress, chaos, and contact among inmates and staff. I believe this is a bad bill because of the increase in expenses. It is about $25,000 dollars to house one inmate per year. Just think about how much it will cost Government officials to house beyond over populated prisons. For example, if the maximum prison term for armed robbery is 15 years and that conviction is doubled, the city has to pay for an extra 15 years of housing to inmates.
Factor number two is the company offering free shipping to orders over $100. Not only did this cause the company to lose the income that it brings in for shipping and add shipping costs to it’s expenses, it also added to marketing by $13,000 plus an additional $32,000 for magazine marketing when ‘Marketing and administration’ it was only budgeted at $90,000. The shift in the economy during this time frame affected the budgeted ‘labor’ expense due to the increase in pay for it’s hourly employees. All of these factors combined worked against the company to cause a negative in operating profit. Although AGM fell short in meeting it’s master budget for this quarter, these unexpected occurrences can help them to better budget for the future of agm.com.
This regulation is considered effective because it will decrease the number of smokers, keeps humans healthy and increases taxes to balance tobacco related expenses. Firstly, by making the tobacco tax higher, it will decrease the numbers of smokers. When the tobacco tax increases, the cigarettes price will become more expensive. In other words, the smokers would spend lots of money for smoking. As quoted by Depkes RI, the Ministry of Health Republic of Indonesia, Indonesian smokers commonly spend Rp 198,761 per month for buying cigarettes in 2013.