If the expected change in variable costs takes place, how many skateboards will have to be sold next year to earn the same net operating income, $120,000, as last year? * 4. Refer again to the data in (2) above. The president has decided that the company may have to raise the selling price of its skateboards. If Tyrene Products wants to maintain the same CM ratio as last year, what selling price per skateboard must it charge next year to cover the increased labor costs?
* An additional problem Palladium doors has is in regards to the small number of sales representatives they have. The company employs only 10 sales representatives. Of these ten, eight are responsible for calling on the 300 non-exclusive dealers twice a month, while the 50 exclusive dealers are called on by the remaining two. * The company itself is a smaller regional garage door manufacturer in this industry, with the largest being Clopay Corporation, whose sales exceed $400 annually. This company sells to 2000 independent dealerships including larger home centers like Menard’s and Home Depot.
The management believes that the investment made by the company to expand will increase its market share and be more productive than competitors. They also believe that the newly developed products will render the competitors products. In addition to that, the company’s future is seen as bright by management and shareholders. 3. In theory, to fund an increased dividend payout or a stock repurchase, a firm might invest less, borrow more, or issue more stock.
The test market showed that only 6 percent of the market tried product and of those 6 percent 30 percent bought 3 times their initial purchase. Let us assume that the factors of the test market are mirrored once they distribute to the 19 cities in the southern tier of the U.S. Table 1 below shows the potential profits given the same variables as the test market with a few changes. The biggest change is the fixed costs adjusted for a bigger market. Since the new market is roughly 4 times the size of the test market, I multiplied the expenses to match the new market accordingly. The test market numbers given in Table 1 shows a loss of $1,204,150, which is mostly attributable to the high market expenses.
According to the Costco Wholesale Corporation Company Profile (Datamonitor, 2009), 78.5% of total revenue comes from the United States, the company’s largest geographical market, it is an increase of 10.4% from 2007. Canada generates 14.5%, and the remaining 7% are from other branches such as Taiwan, Japan, South Korea, U.K. and Mexico. Compared with 2007 and 2008, the Canadian and other international markets’ revenue increased by 20.7% and 21.9% respectively. Based on the Onesource company report (2008), Costco’s revenues can be separated as follows: 22% from sundries, 19% from hardlines such as major appliances and electronics, 20% from food, 10% from softlines such as apparel and
“Federal taxpayers spend far more per year to house one inmate ($ 23000) than to educate one child( $8000).”. “The department of justice budget grew over 800 percent between 1981-2002 compared to the department of education which only grew 285 percent. The growth disparity is continuing. “ It cost more to send a person to prison for four years than it does to send a person to a four year university.” “ At the end of 2001 there were an estimated 1.2 million nonviolent offenders locked up in America at a cost of $24 billion annually.” Total Cost to taxpayers of marijuana- related incarceration reached more than $1.2 billion per year. This does not include the cost of investigating, arresting, and prosecuting the hundreds of thousands of marijuana users arrested each year” “the total number of drug prisoners represented 20.7 percent of the state and 62.6 percent of the federal inmate populations…” A conservative figure of $24,848,134,000 is the retail sale of cannabis in America.
* Manufactures insulated and non-insulated steel doors. * 70% of sales comes from exclusive dealers * Therefore 30% of sales came from non-exclusive dealers Competition * Competitors include Clopay Corporation, Overhead Door Corporation, Wayne-Dalton Corporation, Amarr Garage Doors, and Roynor Garage Doors. * Home Depot, Menards, and Lowe’s Companies sell competitor brands in their stores * Palladium Door, Inc. is one of the smaller regional garage door manufacturers in the industry Assumptions: 1. Sales for Palladium will increase by 36% in 2004 2. Total sales for Palladium will equal $12.5 million in 2004 3.
• Implementing information technology in order to increase efficiency in operations and marketing aids. • Point-of-sale systems that helps increase inventory turnover and sales and lead to better targeted customer marketing. • Brand identity. • The use of informational complexity to promote and educate consumers regarding their products. Q4 What are the key elements of Oliver’s strategy?
Another thought Jeff should consider is choose between whether to take facility with excess capacity or one with the potential for expansion. Below my calculation shows larger facility is more profitable: Jeff should give greater priority immediately; various factors will be analyzed through the decision tree analysis. Jeff would have to choose between whether to take facility with excess capacity or one with the potential for expansion. At decision point one above, if he takes the location with excess capacity, the expected value of this decision will be: he has to do some analysis, market research and look at all the factors which will impact the business and what is convenient for his customer as well. Market research and look at all the factors which will impact the business and what is convenient for his customer as well.
In this case, not only is time and workmanship to be taken into consideration but also information systems cost as well. Cost for software, hardware, workspace and so forth. Quality is measured by the goals set and achieved specified by management. It results in better organizational performance and making decisions. I believe with new hardware and the CRM solution fully employed increase in business, increase in revenue, better reporting and data access will help the business significantly.