Net profit margin 27.32 25.91 24.89 1.813 4.10 Return on equity 30.45 35.72 36.39 29.16 -2.61 Return on assets 17.87 19.34 16.69 9.71 -0.65 Return on Capital 22.33 23.85 22.08 16.06 2.08 Income/Employee 960 1,043 934 655 -55 Revenue Employee 5,342 6,186 15,727 4,782 5,594 Revenue turn over 1.00 1.15 1.02 0.83 0.56 Inventory turnover 61.80…
a) Method 1: 20 drivers at $10 = $200 + 10 machines at $100 = $1,000) = $1,200 dollars b) Method 2: 50 drivers at $10 = $500 + 2 machines at $100 = $200) = $700 dollars c) Method 3: 100 drivers at $10 = $1,000 + 0 machines at $100 = $0) = $1,000 dollars d) Method 4: (10 drivers at $10 = $100 + 12 machines at $100 = $1,200) = $1,300 dollars Since the utility of the trucker must deliver 50 spots for the month and must do it in the most accurate way. The trucker is eager to give up of his drivers to be able to have the funds to purchase machinery.…
The president of the company expects increasing costs to reduce the contribution margin to 20%. He would like to attain a 5% pre-tax profit margin which would be a slight increase from the current 4.9%. Company policy limits promotional expenditures to 5% of sales. In 2007, 4.9% of total sales were spent on promotional costs including sales and sale administration…
Overland Trucking 1. Relevant costs that would be incurred with accepting FHP’s proposal would be insurance, fuel, oil lubricants, tolls, parts and small tools, hourly wages for drivers and the trailer pool expense. Fixed costs are not relevant as they will be incurred regardless if Overland accepts the deal or not. These expenses are a fixed amount that do not fluctuate with the number of shipments the company does. 2.…
What began as a wooden bat company has evolved into a company that manufactures both wood and aluminum bats, gloves, helmets, and other accessories. This evolution is largely due to an increase in performance technology, particularly in the production of aluminum bats. Since the company’s beginning, Louisville Slugger has always employed the most powerful technology available in the business mostly because of its strong research and development teams and significant investments in production…
Reducing operating costs is probably the easiest and most effective way to increase profit margins. In most situations reducing operating costs in a company can’t be done without a tradeoff. In this exchange a company might have to sacrifice quality in order to decrease costs or take measures that negatively affect employees in order to reduce labor expenses. In most of these situations management must make difficult decisions that have the potential to help or harm the company in the long term. Rocket-Blast, LLC, a beverage maker, has seen its profit margins reduced, which presents a real problem for the company going forward (Precord & Macdonald, nd).…
Problem: From my analysis of Foxy Originals, I will be exploring the decision regarding whether Jennifer Ger and Suzie Chemel should continue attending trade shows or focus on expanding their current online market strategy. Both Jennifer Ger and Suzie Chemel’s overall goal is to increase Foxy Originals overall profit by at least $100,000. By applying the Cost – volume – profit analysis, I will examine the changes in profit in response to the changes of selling at low or high sales volume. The analysis will provide us information about Foxy Originals breakeven point which is when all fixed and variable cost are covered; resulting in zero profit.…
My friend just purchased the new iPhone 7 and needs to choose a phone carrier. There are two plans to choose from, Verizon and AT&T. I had to figure out which plan would be better, (cheaper), to recommend to my friend. AT&T offered a plan with a $.20 per text charge and a $15 initiation fee, while Verizon offered a plan with a $.10 per text message fee and a $70 initiation fee. I found, by comparing the two plans algebraically, that AT&T would be better if my friend is planning on sending less than 550 texts per month, and Verizon would be better if they are planning on sending more than 550 texts.…
Having eyes frequently glaring at you in fear while walking in the city at night and being constantly chewed out for riding a bicycle by both automobile drivers and pedestrians can cause quite the toll on a human being. These things are the daily occurrences for Brent Staples, an African-American journalist, and an internet blogger, JDOWSETT, who chooses to ride his bike in a predominantly automobile environment. In a world where it seems that society continues to favor those who are privileged, this perpetual belief continues to distort many people from understanding what it’s like to live a not so privileged life, especially how people of color are often negatively viewed at compared with those who are white. Staples and JDOWSETT share their…
Later on, we arrive at R v Rebels which thrusts viewers into the action during an episode of intense questioning. The prosecution’s witness, an ex-president of the Rebels Motorcycle Club, was the victim. The issue was in identifying the people who assaulted him. It was obvious the witness was being deliberately un-cooperative as reflected by his response, “I don’t know”, to the majority of questions posed to him. Even though the incident occurred three years ago, the witness failed to recall even basic facts such as whether he regularly fed his dog.…
Future prediction According to the information from the newspaper, some news should be notified that the outstanding achievement for the last year, which the overseas buyers bought 80% of the 45,000 bikes Compton sold, with demand growing strongly among urbanites in Asia and the U.S., and it made £3.4m profit on a turnover of £28m last year and employs 240 staff, more than half of which have skilled manufacturing jobs. Compton exports its bikes to 44 countries, and has stores in cities in the Netherlands, Italy, Germany, Thailand and China. All the information, I collected from the newspaper mentioned how successful the Compton Bikes Company was last year. The overseas buyers bought 80% of the 45,000 bikes Compton sold, that means the liquidity…
Intro RubberTech ’s beta tests of RubberTech Purifier (RTP) reveal it to be an impressive and cost effective product. However, before launching RTP, RubberTech must develop a complete marketing strategy for the product. RT must also ensure profitability over the next two years as investors are due their returns. Thirty Thousand Foot View…
| Total liabilities and stockholders' equity | $1,000,000 | $1,300,000 | $1,894,000 | | | | | | Exhibit 3 | Selected Industry Ratios | | | 200X | 200Y | 200Z | | Growth in sales | ----- | 9.98% | 10.02% | | Profit margin | 5.75% | 5.80% | 5.81% | | Return on assets (investment) | 8.22% | 8.24% | 8.48% | | Return on equity | 3.26% | 13.62% | 14.16% | | Receivables turnover | 10x | 9.5x | 10.1x | | Average collection period | 36 days | 37.9 days | 35.6 days | | Inventory turnover | 5.71x | 5.62x | 5.84x | | Fixed asset turnover | 2.75x | 2.66x | 2.20x | | Total asset turnover | 1.43x | 1.42x | 1.46x | | Current ratio | 2.10x | 2.08x | 2.15x | | Quick ratio | 1.05x | 1.02x | 1.10x | | Debt to total assets | 38% | 39.5% | 40.1% | | Times interest earned | 5.00x | 5.20x | 5.26x | | Fixed charge coverage | 3.85x | 3.95x | 3.97x | | Growth in earnings per share | ----- | 9.7% | 9.8% | | | Rubric: Watson Leisure Time Sporting Goods | | | 200X | 200Y | 200Z…
Factors Influencing Decision According to Hilton and Platt (2014) many companies choose to relinquish traditional cost accounting perspective and practice a more active cost management angle (Hilton et al., 2014). When Amazon analyzes operating costs within each of their cost activities, it is much simpler to prognosticate the influence of all modifications to overall costs. The intricacies of ABC can pose some interpretation challenges nonetheless; it offers managers more pointed and precise information that can serve decision making favorably.…
A correlation analysis will be conducted to show the relationship between technology and cost. Slide 8 - Possible Solution to the…