Kroger has greater ROA performance at 6.4% in comparison to 6.0%. However they do have a weaker profit margin at 2.0% vs. 2.4%. Kroger overpowers this profit margin weakness by displaying quicker asset turnover at 3.171 (Kroger) vs. 2.509 (Safeway). 3. Which company was the more profitable in 2004?
If all products’ have to go through a distribution center prior to final delivery to customers the effect may be minimal. Customers generally feel more comfortable when product is stored nearby. Order fill rates Can improve with inventory dispersed across fewer storage locations. Fewer transfers will be required to meet customer demand. Pending on the distance from warehouse locations to customer locations, delivery time may be an issue.
The differences over cost driver between LG and TORK are mainly come from the followings, please see below: Design: LG uses the plastic parts which the weight is lesser than Tork steel’s part and also the cost are cheaper. Moreover, the assembled times of LG are faster than Tork along with the wages rate of LG are lower. In conclusion, LG are cheaper and faster than Tork Geography: The freight costs of LG are significantly higher due to requiring ocean freight and shipping to distribution centers, whereas Tork relies on trucks and trains. However, LG enjoys a large wage advantage in Korea. Facility: LG has higher manufacturing volume based on they has an advantage from scale of economies by purchasing lots of material and got the discount on the prices.
A higher sales revenue will occur for etisalat which means the income the company receives from business activities, usually happen from sale of goods and services to customers. Etisalat will also have more opportunities to invest in upcoming projects. If the opposite occurs and etisalat has low availability and higher costs it would mean, people spend less on their goods/services which would mean there’s a low
This ensures us to get the reinvestment return from the cash flow on the WACC without worrying about the scale problem. I find that developing the new technologies in the house has higher MIRR than purchasing; the two rates are 17.40% and 15.40% respectively. 2. NPV, the sum of the present value of the cash outflows and inflows can measure the expected change in wealth from undertaking the project. The NPV for purchasing the technologies is 94.71 million and the NPV for developing the technologies is 127.24 million.
As the time horizon increases, variable costs rely less on existing factors and restrictions and therefore will begin behaving differently which will in turn affect the cost of production (Wright, 2007). The second way a firm that’s into profit maximization can decide its greatest level of output is by way of the marginal revenue -- marginal cost method. This is done by subtracting the marginal cost from the marginal revenue that a product generates. Using marginal cost and marginal revenue as the bases, profit maximization will be obtained at the point when marginal revenue is equal to marginal cost. If the marginal revenue is greater than marginal cost this would be when a profit maximizing firm would need to increase production until marginal revenue is equal to marginal cost.
Similarly, the transaction cost for stores such as H&M is more than that of the jewelry shops but less than the department stores. Also, it is much harder for a business enterprise to internalize if it has high transaction cost. Thus, jewelry shops can internalize at an easier way as they have comparatively lower transaction costs. Since, jewelry shops can internalize in an easier way, theoretically, they should make more money. And it is only fair that the shop that makes more money has to pay more rent.
Another influence is what they hold in a current account could be considered a deficit which means the country is spending more on foreign trade than it is receiving. This creates a supply of their own currency than a demand for its products. According to our text, Mankiw, (2007) 1. Consumers are wealthier, which stimulates the demand for consumption goods. 2.
The combination of low competition and market up prices, Whole Foods was able to make more profit than other traditional grocery stores. 2. How could Whole foods have a higher profit margin and yet still, overall, show a lower profit than other
In my opinion, Kauffman’s hourly compensation rate can be lower. Mainly because of the larger inventory which can be selected to a lower cost. Kauffman targeting the middle class would lead to more customers meaning more profit. While at Parkleigh’s the employees discount is