The maximum sales loss would be 25% before they can tolerate before a 20% price increase, which amount to 1,500 bottles per day instead of 2,000. 2. In order for Healthy Spring to reposition itself as a premium water, management believes that it will have to upgrade the packaging of its product. The company will deliver the water in glass rather than plastic bottles and the bottles will be "safety sealed" to insure their cleanliness until the covering is removed in the customer's home. These changes will add $1.00 per bottle to the variable cost of sales.
Fewer companies are willing to enter the market because of the SOX requirements that make going public too costly. Plus, the maintenance required to stay public is too expensive for smaller companies, forcing companies to look elsewhere to raise capital. Rising costs persuade large numbers of companies to exit the public markets to sidestep SEC regulation, creates two problems. First, the overall economy could suffer because corporations limit investment projects due to the higher-cost sources of capital to fund potentially new operations. Second, financially stressed companies that go dark are the very companies’ shareholders need to monitor usually and where transparency is most important.
Also, over the last decade, consumers in the grocery industry have become less loyal. They will shop around for the best deals rather than habitually shopping at one grocery store. This means that Reed could gain more customers that are currently in its area but who do not shop at Reed by offering private label brands at lower prices. It also means that Reed’s current customers will be less likely to shop at other stores if Reed is offering similar low prices. The increase of private label brands has been a trend in the grocery industry over the last five years.
Assignment #1 Economics and Ethical Issues Mrs. Acres Homemade Pies In relationship between supply and demand for Mrs. Acres Homemade Pies, according to the growth of production, consumers are willing to buy Shelly pies at $4.50 each with a production of 8000 pies per month with a profit of $12,000. In order to stay at a $12,000 monthly profit, if Shelly decide to raise her price to $9.50 per pie; the impact will decrease the demand for her pies and her production would only have to be 2000 pies per month. The equilibrium price for Shelly pies is $6.00 per pie with a production of 4000 pies a month.
The Concordat agreement meant that all 32 councils would not increase council tax for years 2008/11 and they would also receive an extra £70 million to deliver essential services such as housing, education and social services. However, it could be argued that due to the Concordat agreement the local authorities can't afford to carry out government policies which can cause conflict between the Scottish Government and local authorities. Scottish local authorities are finding it difficult to fund things like the drop in class sizes and that has caused speculation that the Scottish Government and COSLA have more or less abandoned its full scale implementation. Many local authority leaders are saying that the Concordat should be re-written or new money found if national commitments are to be met such as funding free school meals in P1 – P3. It could also be argued that there is more cooperation between the Scottish Government and local councils as the levels of ring-fencing have been reduced.
An example of this would be when a customer is not able to pay their bill because due to a downturn in the economy, money may be tight if they have been laid off from their jobs or faced with unexpected hospital bills. Under the direct write-off method, companies record bad debts expense in a period that is different from the period in which they record the revenue. The method does not attempt to match bad debts expense to sales revenues in the income statement. The direct write-off method show accounts receivable in the balance sheet at the amount the company actually expects to receive. Unfortunately, unless bad debt losses are insignificant to the company, the direct write-off method is not acceptable for financial reporting
The total amount of machines on-hand seemed appropriate for production, but the number designated to each product was altered since more units were being produced of C_Fad. Automation for Cake and C_Fad were left at 4.0 and 3.0, respectively. Under fiscal policies, since the cash was available, $2 of dividends was paid out and $3,000,000 of bonds was retired. Given that a new product was coming out this year, it seemed necessary to require 10 hours of training per employee per year to keep everyone up-to-date on the products. Lastly, as part of the company’s Total Quality Management strategy, $1,000,000 was put toward Channel Support, and an additional $1,000,000 was put toward CCE and Six Sigma
Cons: Retails could by less baking soda and could probably decide to sell baking soda at a higher price, which could deter some existing costumers from buying again. Option 2: Since a 40% of consumers use coupons when purchasing baking soda the brand director could attempt to increase consumer promotions. Pros: There has been some success in the past to this method and there is also an emerging trend of coupon clippers as mentioned in the case. Cons: This would lower the amount of revenue per unit sold and although consumer like to use coupons when purchasing baking soda, a heavy user of the product only purchases 5 times a year. Option 3: Increase the turnover rate of baking soda by introducing freshness indicator in the small 8oz packages of baking soda.
Andy Wright, VP of Veterinary products, feels that releasing now could help in understanding go to market strategies and improve the adoption of Hemopure through Oxyglobins launch. As CEO Carl Rausch considered the effects Oxyglobin would have on the company’s IPO launch. While human blood demand is crucial and high, the traditional format of screening from donors has inefficiencies that prolong the shelf time of donated blood. The majority of RBC’s goes to 2.5million patients suffering from acute blood loss. Comparatively, veterinary blood demand does not have these kinds of numbers due to the lack of blood banks.
If they put bad ratings on them, they wouldn’t sell! But they eventually couldn’t keep them high. Once the ratings went down, people couldn’t pay off their loans. They use the analogy of bubbles for economic problems. We have and now we have the bailout bubble.