Free Essay

Area

In:

Submitted By Akanni1975
Words 1260
Pages 6
1. Profile of Arewa Textiles Limited.
Arewa Textiles Limited having recently just finalized the process of applying a special finish to textiles materials (fabrics for ladies’ dresses (Higher priced material and lower priced material) and upholstery), the company is ready to introduce the product to the market. The company presently enjoys monopoly on the products due to years of quality research works put in the process of production, highly competitive, easily available in commercial order and a secret formula for achieving the special finish on textile materials. Mr. Ahmed Arewa an executive of the company carried out a market survey in Abuja, Lagos and Port Harcourt to determine the anticipated demand and possible selling price of the product before it is launch into the market to mitigate the risk involved. The company have to decide what business to solicit, is it the upholstery materials or the fabric for ladies’ dresses. In addition, they need to decide what class of the fabric for ladies’ dresses to seek since the dress market is divided into two sector; higher priced fabric and lower priced fabric. Arewa’s profitability depends on her ability to be creative with different patterns of styles on the textile materials. The company has in place two machines that can operate at 100% single-shift capacity for 2000hour in a year for the special finish process.

b Profile of Upholstery Market
It is assume that the acceptance of the of the upholstery market is more uncertain when compared to the fabrics for ladies’ dresses and that it will required a higher promotional expenses for it to be profitable compared to the fabrics for ladies’ dresses.

c Profile of Higher price Fabric
The market survey reveals that the fabric can be sold for between N300 to N700 per yard, averaging N400 per yard but the demand is uncertain however buyers have shown interest though not steady. The production process for the fabric is faster when compared to the Lower price fabric, as more yards of products are produce within the same period. It is assume that the higher priced fabric market requires lower promotional expenses when compared to the upholstery market. d Profile of Lower price Fabric
The demand for the product is certain and achievable with less stress though only sustainable for two to three years. It becomes unpredictable subsequently. The market survey reveals that the fabric can be sold for between N260 to N400 per yard, averaging N340 per yard. The fabric appearance is similar to that of the higher price fabric, which makes it impossible to sell both fabrics in the same market at the same time. The production process for the fabric is slower when compared to the higher price fabric, as fewer yards of products are produce within the same period. It is assume that the lower priced fabric market requires lower promotional expenses when compared to the upholstery market.
2. Mr Arewa’s Assistant Problem
Mr Arewa’s Assistant problem in the case is twofold namely: * How to decide which market to solicit between the upholstery and the fabrics for ladies’ dresses.

* How to choose between the higher price fabric and the lower price fabric or combine both market for profitability.

3. Mr Arewa’s Assistant Objective
His objective is to strategically identify a market that will optimize profitability and sustain business.
4. Decision Criteria that will Guide the Decision Alternative that will be chosen to solve the Company’s Problems * Minimize uncertainty with respect to Demand.

* Improve profitability

* Minimize Cost

* Sustain business existence

5. Quantitative Analysis that will be used to evaluate the decision criteria
The income statement of the two sectors was computed at 100% singles- shift operating capacity as shown in the attached appendix. Since the demand for the high priced fabric was uncertain and to avoid waste the breakeven point quantity was computed so as to determine the reasonable quantity to produced on the high price fabric. Profitability statement was computed for different percentage of demand – 25%, 50% and 75% for the high priced fabrics to estimate the expected demand of the product. However, since the company was sure that enough business would be achieved effortlessly for the lower priced materials, the process was operated at 100% single-shift capacity and the income statement for this is also computed.

6. Decision Alternatives Available to Mr Arewa’s Assistant * Scenario 1 – Produce the lower priced fabric for the first three years where demand is certain and combine with the upholstery market when the demand decline putting the breakeven quantity into consideration in subsequent years.

* Scenario 2 – Produce the Higher priced fabric for the first two years assuming a 25% demand and switch to lower priced fabric if demand is poor.

* Scenario 3 – Produce the Higher priced fabric for the first two years assuming a 50% demand and switch to lower priced fabric if demand is poor.

* Scenario 4 – Produce the Higher priced fabric for the first two years assuming a 75% demand and switch to lower priced fabric if demand is poor.

* Scenario 5 – Produce the Higher priced fabric for the first two years assuming a 100% demand and switch to lower priced fabric if demand is poor.

6. Evaluation of Decision Alternatives based on the decision criteria identified above: S/No | Criteria | Decision Alternative | | | 1 | 2 | 3 | 4 | 5 | 1 | Minimize uncertainty with respect to Demand. | * | * | * | | * | 2 | Improve profitability | * | * | * | * | * | 3 | Minimize Cost | * | * | | * | * | 4 | Sustain business existence | * | * | * | * | * |

7. Recommended Decision Alternative for Mr Arewa’s Assistant
Based on my review, as detailed in the above table of the identified different scenario using the decision criteria also already previously identified, I recommend that the company should produce the Lower priced fabrics at 100% single-shift capacity for the first three years, with continuous development of new styles and continue to conduct more research to improve the process and make it more competitive with other innovation that might come into the market. The company should be mindful of their breakeven point from the fourth year and above, so as to ensure that production remains profitable based on the demand trends and they can augment their production by diversifying into the upholstery market.
8. Implementation Plan for Arewa Textiles
Arewa should commence the production of the lower price fabrics, develop different pattern of style to be introduce intermittently into the market to spice up consumer and fulfill their needs. The company should also intensify her research towards the improvement of the process so as to remain competitive in the market.
9. Additional Information that will affect the above decision:
If there are more details on the sales volume of the higher priced products, then it will be easy to estimate the profitability of the products and the comparison with Lower priced products will be more precise.
Supposing we have information on the profitability of the upholstery market, it would have been better to seek this business alternative, as his demand might not be clouded with the huge uncertainty in the fabric market. More so, the business will remain a going concern as against a business that is face with extinction within three years.
The pricing of the products will have be more definite to ascertain if there were information of the major factors that affect pricing vis a vis value of fabric, amount of material added, complexity of the process, current competitive situation and customer’s bargaining power. If this information is available the actual difference between the selling price of the lower and higher priced fabric will be easily to estimate and this will translate to the profitability of the sectors.

Similar Documents

Free Essay

The Area

...Area is a quantity that expresses the extent of a two-dimensional surface or shape, or planar lamina, in the plane. Area can be understood as the amount of material with a given thickness that would be necessary to fashion a model of the shape, or the amount of paint necessary to cover the surface with a single coat.[1] It is the two-dimensional analog of the length of a curve (a one-dimensional concept) or the volume of a solid (a three-dimensional concept). The area of a shape can be measured by comparing the shape to squares of a fixed size.[2] In the International System of Units (SI), the standard unit of area is the square metre (written as m2), which is the area of a square whose sides are one metre long.[3] A shape with an area of three square metres would have the same area as three such squares. In mathematics, the unit square is defined to have area one, and the area of any other shape or surface is a dimensionless real number. There are several well-known formulas for the areas of simple shapes such as triangles, rectangles, and circles. Using these formulas, the area of any polygon can be found by dividing the polygon into triangles.[4] For shapes with curved boundary, calculus is usually required to compute the area. Indeed, the problem of determining the area of plane figures was a major motivation for the historical development of calculus.[5] For a solid shape such as a sphere, cone, or cylinder, the area of its boundary surface is called the surface...

Words: 422 - Pages: 2

Free Essay

Area of Usable Room

...Program that will calculate the number of square feet (living space) in a 4-room house. Problem Analysis In this Program , the aim is to calculate the square feet of a 4 –room house So we need to know each room’s length and breadth, then calculate each room’s area and the find the sum of those Area of Room1=length1*breadth1 Area of Room2=length2*breadth2 Area of Room3=length3*breadth3 Area of Room4=length4*breadth4 Total Number of Square Foots = Area of Room1+ Area of Room2+ Area of Room3+ Area of Room4 Program Design Pseudocode Start Declare the variables i,j as interger length[4], breadth[4],area[4] as double array sum as double Display “Enter the Rooms length and Breadth” For i= 1 to 4 do Accept length[i], breadth[i] Next i Display “Finding Area and total number of square foots” Set sum=0 For i= 1 to 4 do Area[i]= length[i]* breadth[i] Sum=sum+Area[i] Next i Display “Total number of square foots”, sum Stop Program Comments and Test Data Test data and Output Example application test data: Input: Room length and width (in feet) Expected output: Total square footage of house (in square feet) Room1: length=10, width=14; Room 2: length=9, width=10; Room 3: length=12, width=12; Room 4: length=11, width=9 473 Room1: length=20, width=10; Room 2: length=15, width=10; Room 3: length=20, width=10; Room 4: length=30, width=10 850 Room1: length=20, width=15; Room 2: length=10, width=5; Room 3: length=30...

Words: 276 - Pages: 2

Premium Essay

Area Calculator in C

...Jesse Sabatini CMIS 102 6387 Introduction to Problem Solving and Algorithm Design (2158) Professor Anyanso, Chukwuma Due: 30 Aug 2015 The following program that I created was in the language of C. I used the online free compiler found at https://ideone.com/DRQIBZ in order to make sure that everything in the coding worked properly. The purpose of the script is to calculate the area of 4 individual rooms and ultimately get an output with the over all usable area. The thought process behind my code was first under the assumption that all four rooms in the house were either a square or rectangular in shape. With that in mind, and also the fact that I have never written anything other than Hello, World!, I researched multiple ways to create an “area of a rectangle or square” C language algorithm and experimented with what worked best for me. Once I figured out a little more about how the syntax worked, I then added the necessary variables in order to allow for the calculations of multiple rooms. Once I established the formulas to create the correct output, I then added the variable for the overall total and introduced the proper equation needed to give said total. Although I will also have a table below containing the variable data, making it more organized, I must note that with the IDEONE compiler I had to hit return after every number input representing each dimension necessary to complete the syntax...

Words: 595 - Pages: 3

Free Essay

Usable Area in Square Feet

...Problem definition: Calculate the usable area in square feet of house. Assume that the house has a maximum of four rooms, and that each room is rectangular. A. Problem Analysis – Following the directions in the assignment, clearly write up your problem analysis in this section. Description: The program first accepts the number of rooms. Then for each room the dimensions are taking (Length and Width). With all the dimensions recorded for each room, Area is calculated as Length by Width, using the formula for area calculation of a rectangle (Length*Width). The final unused area is the sum of all the areas from the number of room specified. Analysis: The number of rooms will be held in a variable N, Length and Width for each room will be held in LN and WN respectively. With N representing the room number. AreaTotal and AreaTemp are used to hold the final area values and the temporal values of area for each room respectively. To keep track of which room’s dimension or area is being dealt with, the variable Count will be used. Variables to use: 1. N : Number of Rooms 2. Count : Count for loop 3. AreaTemp: Temporal area 4. AreaTotal : Total area 5. LN : Length of Room number N 6. WN: Width of Room number N B. Program Design – Following the directions in the assignment, clearly write up your problem design in this section and comment your pseudocode. Pseudo Code: 1. Enter the number of rooms : N 2. Set Count = 0 3. If Count...

Words: 497 - Pages: 2

Premium Essay

Gentrification In Urban Areas

...As plans for gentrification continue throughout urban areas civilians are questioning the benefits that arrive with the addition of new, more expensive housing in cities as well as the affects of the displacement of millions of low-income Americans. There have been many solutions, yes, but mine, one of much thought and dedication, is one that truly examines every aspect of this increasing issue. It is imperative that we continue to improve the overall aesthetic of certain areas within the city, but it is possible to do so without pushing so many innocent, paying renters to the street. After all, how does pushing people to the street improve its appearance? After much research, I have discovered that the majority of the people who are...

Words: 463 - Pages: 2

Premium Essay

Broca's Area Essay

...Broca’s area was discovered in 1861 by Paul Broca through an autopsy of an individual that had problems with speaking and writing. This is where Broca discovered that this individual had something in common with other patients with the similar impairments: a lesion (injury) in the lower left frontal lobe of the brain. Broca’s area is located above and behind the left eye and this is the part of the brain responsible for speaking and language comprehension. This area controls the motor neurons that are responsible for speech control. The exact location of Broca’s area is not precise because it varies due to the sulci and gyrus surrounding it but generally the location is classified as being in the left frontal lobe. When damage occurs to Broca’s area (although it can still occur without damage to Broca’s area), it is called Broca’s aphasia. Aphasia is where a person has problems with speaking, reading, writing and even listening. The most common cause for this aphasia is a stroke. Specifically when Broca’s area is damaged, the aphasia is expressive meaning that individuals will have a hard time forming sentences. In the case of Broca’s area, damage location does not necessarily correlate to...

Words: 772 - Pages: 4

Premium Essay

Canada's Urban Areas

...Canada’s Urban Areas Urban areas are an important part of Canada’s population since 81% of our population lives there, and 91% of immigrants choose to settle there. Some will grow fast and other will decline due to emigration. These changes will present new opportunities for economic and social progress, but will also challenge us to make sure that all Canadians can live well. Settlement Hierarchy The classification of settlement is determined by size and function. * As settlements increase in population size, the distance between settlements of similar size increases * As settlement size increases, the number and complexity of the settlement’s functions increase as well This hierarchy helps the government determine the needs different communities have for services, thus determines the distribution of money to meet the challenge to provide these services Some communities grow faster than others and swallow up former communities of different sizes, because of this it can be a challenge to define places and populations, thus CMA’s are created to define the area. Census Metropolitan Area (CMA) – an urban area with a population of at least 100 000 people of whom 50 000 or more live in an urban core. Sphere of Influence – the region served by a settlement Increasing sizes of settlements, increases the sphere of influence, which means larger settlements will attract people from a wider area and greater distances, Large Cities have always attracted people...

Words: 651 - Pages: 3

Free Essay

Newfoundland Protected Areas

...Geography 3202- Lab 3 My map entitled “Provincial Protected Areas” is a government map that I have edited to try to make it “easier” to interpret/view. I edited the map with the main focus being on urban centres, roads, rivers, lakes and protected areas. I tried to edit the map with the protected areas being the main focus. Urban Centre On this map, I tried to have a focus on the main urban centres that were located relativity close to the protected areas, so if anyone wished to visit these areas then they would have some sense as to the location of accommodations. There are many towns in Newfoundland; the general public would be more familiar with the larger centres and this could give them some direction as to where the protected areas were located. Roads There are many roads in Newfoundland, so it is important that I was able to classify which ones were “important” rather than others. I felt it essential that I have the Trans-Canada-Highway as this shows how to get from one side of the island to the other. I also felt that the Viking Trail Highway was very important since it shows how to get from the TCH to the tip of Newfoundland which was also the location of a few protected areas. I also kept some primary roads in place since they show how to get to particular protected areas. I deleted many of these primary roads since they did not serve a purpose for the “protected areas” aspect of this map; it also looked very clustered in some places which made the map harder...

Words: 549 - Pages: 3

Premium Essay

Area 51 Conspiracy Theories

...Area 51 is a secret military base out in the Nevada, Las Vegas. There is a lot of conspiracy theories on this topic but the majority of people believe that area 51 and Aliens are real. There are a few reasons to back up this theory. These reasons are based on research such as based on people's accounts or town/city accounts. Two main reasons back up this theory. First off, a claim for this theory is Area 51 is real because they have the locations for it. Evidence to show this is "Area 51, s Nev., c. 80miles" Its located within the U.S. Airforce's enormous Nevada test and training range. These pieces of evidence show they have the locations because its tells exactly where the "air force" base is. Is this the real locations of the base? Secondly,...

Words: 374 - Pages: 2

Premium Essay

Informative Essay On Area 51

...noticed strange and unusual lights? Chances are that you’ve might have just seen a UFO. Aliens may be all around us but are being kept discreet from mankind. There may be supernatural operations occurring at Area 51, where aliens are being tested and advancing our technology we have today. Area 51, may be testing on aliens, but it hasn’t always been that way. Area 51 is a military base located 100 miles from Las Vegas. It was originally used to test aircrafts such as the U-2 and OXCART surveillance aircraft which dates back to the 1950’s. During the time period of World War 2, it was believed that Area 51 was used during World War 2 as a training ground for the US Army. It was also believed that aircraft flew out of the base to secretly photograph the Soviet Union and their military operations. But as of today, many people feel this has changed. Today it is believed that Area 51 is a testing ground for supernatural beings and their technology involved....

Words: 634 - Pages: 3

Free Essay

Politics in Rural Areas of Pakistan

...Politics in rural area of Pakistan It is commonly observed that when state fails to furnish its inhabitants with basic human rights and needs of living, frustration level among the people springs up badly. People show reluctance in obeying the laws and some kind of anarchy is prevailed all around the country. As a result of which law and order situation is critically maladjusted. The word CHANGE catches more attention in this case. The only path leading us to alter the overall demeanor of nation is through politics. “Politics is the art of influencing people on a civic or individual level, when there are more than two people involved. It is thought of as the way we "choose government officials and make decisions about public policy".” In politics there are two major elements, politicians and voters. Politicians are the persons who stand for the right of people, contest in elections and represent the common people in the legislature. Voters are everyone else than politicians .They pick out their favorite candidate by using basic right of casting their vote in elections. These elected personalities form government and run the overall infra structure of the state. In this entire procedure of elections, the major role is played by voters and their choice of candidate. Here we will discuss the factors that decide the selection of a voter especially in remote and rural areas of Pakistan. In our country population in rural areas is much more than population in urban areas. So their vote...

Words: 1297 - Pages: 6

Free Essay

Wide Area Networking

...Cecilia Lopez Instructor: Ms. Ybarra Intro to Networking NT1210 Wide-Area Networking Unit 7 Lab 7.1: Distance Considerations Exercise 7.1.1 It’s impractical for an organization to own the entirety of a WAN because it would be very expensive for the company to run all the lines necessary and to pay for all the labor to keep the WAN up and running. It is less expensive for an organization to own a LAN so that’s why it is favorable for them to maintain ownership of it. Exercise 7.1.2 The further a signal is transmitted on a LAN lessens the strength of the signal. To transmit signals over a long distance access points are required which also decreases signal strength. Exercise 7.1.3 Media | Infrastructure | Summary | UTP | Phone lines | Uses a customized infrastructure for performing two jobs, one being phone and the other being data transfer | Coaxial | Television cable | This type of media is used for transmission of television from a company to a customers house. | Fiber-optic | Cellular, Broadband | Uses a customized infrastructure to run dedicated connections; this is a costly option | Electric power lines | Electricity, Broadband | This type of media can be used with Broadband over Power Lines (BPL), making use of the extensive infrastructure in place already. | Exercise 7.1.4 Media | Summary | Satellite | Transmits from ground to space then back to where the transmission is required to be sent | WiMAX (Worldwide Interoperability for Microwave...

Words: 743 - Pages: 3

Premium Essay

Local and Wide Area Networks

...Local Area and Wide Area Networks The complex nature of today’s local and wide area networks requires a great deal of planning before the network can be assembled and configured. Identifying and implementing network security is a key area of concern due to the large variety of network vulnerabilities that can be exploited by both malicious and external users. Additionally, the correct switching and routing technologies must be implemented to ensure the efficiency and availability of the network. A network can reach its peak security and efficiency only when these factors are fully considered and correctly configured in the network. Security Hardware and Software One of the primary concerns in the development of a network is introducing and configuring the proper security hardware and software. One of the primary tools in ensuring the security of a modern network is the implementation of a network firewall. A network firewall is designed to allow or deny packets entry or exit to the network based on user defined rules (Beal, n.d.). Traffic can be allowed or denied entry to the network based on a variety of criteria. Traffic can be inspected and allowed, based on IP, port number, application, or its entry or exit security level (Beal, n.d.). For these reasons the internal network will be guarded by the Cisco ASA 5512-X Firewall. The ASA 5512 firewall provides up to 1Gbps throughput with stateful packet inspection with is sufficient to support the maximum speed of the networks...

Words: 1253 - Pages: 6

Premium Essay

Lab7 Wide Area Networks

...Wide-Area Networks | | | David | 4/30/2014 | | Exercise 7.1.1: Owning the entirety of a WAN is impractical for an organization because there are no limitations and they can be custom built to the organization. It is favorable for the organization to maintain a LAN for expansion purposes. Exercise 7.1.2: On a WAN there is no absolute limit for the distance of a leased line. Table 7-1 WAN Physical Media Media | Infrastructure | Summary | UTP | Phone lines | Uses copper lines between all locations, limited speed with the lines. Already in place, can be very cheap to use | Coaxial | Television cable | Must run cable to all locations, can carry much higher speeds than Telco. Is a little more expensive to run. Needs boosters at specific distances | Fiber-optic | Glass cables with POP’s at specific distances | Uses a customized infrastructure to run dedicated connections: this is a costly option | Electric power lines | Power lines. They are everywhere and the infrastructure is already there | This type of media can be used with Broadband over Power Lines (BPL), making use of the extensive infrastructure in place already | Table 7-2 WAN Wireless Media Media | Summary | Satellite | Not very fast, has a delay of about 1 second, very costly to use. Uses a star topology | Imax (Worldwide Interoperability for Microwave Access) | This has 75Mbps speeds and can transmit for distances up to 30 miles. It is designed for metropolitan areas. Expensive...

Words: 784 - Pages: 4

Free Essay

Calculate the Usable Area in Square Feet of House. Assume That the House Has a Maximum of Four Rooms, and That Each Room Is Rectangular.

...CMIS102 Homework Assignment 1 Student Name: Clarence Loveless Class/Section: CMIS102 Professor Name: Nickolas Pitocco Assignment due date: 13 Sept 13 Problem definition: Calculate the usable area in square feet of house. Assume that the house has a maximum of four rooms, and that each room is rectangular. A. Problem Analysis 1. What is the usable living area of 4 room house (output) 2. What is the length of room 1 (length1) - input 3. What is the width of room 1 (width2) – input 4. What is the sq footage of room1 (sqft1)– float variable 5. What is the length of room 2 (length2) - input 6. What is the width of room 2(width2) – input 7. What is the sq footage of room2(sqft2) – float variable 8. What is the length of room 3(length3) – input 9. What is the width of room 3(width3) - input 10. What is the sq footage of room3(sqft3) – float variable 11. What is the length of room 4 (length4)- input 12. What is the width of room 4 (width4)– input 13. What is the sq footage of room4(sqft4) – float variable 14. Add each sq footage together for total living area – float variable Formulas – sq footage=length*Width Total living area=sq footage1+sqfootage2+sqfootage3+sqfootage4 B. Program Design – Following the directions in the assignment, clearly write up your problem design in this section and comment your pseudocode. Input date module ...

Words: 478 - Pages: 2