...- G.G Toys should not produce the specialty line; this line is to costly when it comes to trying to increase the profit margins. Having to set up a line and test all the toys that come off the production line each time is very costly. This should be scraped if the company wants to start earnings some better profits. Also their overhead isn’t being allocated correctly they are including the switch from custom to regular in the regular overhead section. - The President of G.G toys is thinking about starting romaine patch doll, this could be a good endeavor, they are trying to save material by putting the scrap into these dolls. What they should be doing is scraping this line altogether and focusing on the original doll. -The company is currently wasting 20 percent of their pajama production; they could possibly look into ways to recycle back into their original line of dolls. The company can put some money into researching and developing and new process of making the pajamas - The company has set out trying to split into all these other ventures, when what they should have been doing is trying to bring there original doll back to full strenght. They are going to purchase materials either way so if they try and save money by using scrap to make other dolls this just incurs more costs. - Currently the company has a second plant that is specifically producing cribs for the doll. They should try and close down this plant because the costs are too high. They already...
Words: 298 - Pages: 2
...is the key to success? Probably all people who are somehow connected to the internet marketing are agree, that there are several ways to create a really profitable internet business. However not all people manage to create… The question why? Through my business experience I gained knowledge in this field and noticed some facts that are the main keys to success. And by this article I decided to share my experience with you. So the first point is : Traffic – Key To Success? This question has been bothering me recently. Many people nowadays who are connected to the internet marketing argue about this thing. The question is “will traffic increase your profit?” Probably all will agree with me, that traffic is responsible for your profit. So in other words : No Traffic – No sales. Simple, isn’t it? However sometimes traffic doesn’t bring a good sum of sales. Probably because it’s not the targeted traffic. You should spend your time more on increasing the one you need. In other words: When you decide how to develop your internet business keep that in mind, that not just the traffic is success, but a targeted one… Second interesting point is : Good Key Word and Niche research. Mostly all merchants and other people, who are involved with the internet marketing, know that without qualitative key word research and niche research it is impossible to build really strong and successful internet business. But It really takes sum of time to...
Words: 595 - Pages: 3
...Market Research Plan on Accessories: What is an Accessory? It is a supplementary component that improves capability of anything. Scope of Research We have limited our Scope to Fashion Accessories Segment. What is a Fashion Accessory? A fashion accessory is an item which is used to contribute, in a secondary manner, to the wearer's outfit. Accessories are often used to complete an outfit and are chosen to specifically complement the wearer's look. Fashion accessories are categorized into two areas: those that are carried and those that are worn. Carried accessories include canes, hand fans, swords, handbags, parasols and umbrellas. Accessories that are worn may include, jackets, boots and shoes, cravats, ties, hats, sunglasses, belts, gloves, muffs, jewellery, watches, shawls, scarves, socks, bonnets and stockings. Objective of our Research Two main objectives: 1. List most profitable accessories in India. 2. List most popular accessories in India. What is Most Profitable Accessory? Most Profitable Accessory is one which generates more revenues compared to input cost. The Market Price of such accessory will be high compared to the actual cost to the producer. What is Most Popular Accessory? Most Popular Accessory is one which has quality of being well-liked and which is common amongst people. Listing Most Popular Accessory Formal Method Research Methodology: The methodology for the research work will constitute both secondary and primary research...
Words: 1102 - Pages: 5
...financing. Mr. Clarkson seems to be running the company well, evident by the constant growth in sales year after year. However, the company is running low on cash on hand, and needs some form of financing to reach the expected sales of 5.5 Million in 1996.Moreover, the borrowing limit set by the Suburban Bank has been reached, prompting the bank to ask Mr. Clarkson to guarantee the loan personally. Mr. Clarkson has been in communication with another bank, Northrup Bank, which might be willing to extend a line of credit of up to $750,000. Analysis There are several reasons for Mr. Clarkson’s need to rely on borrowing despite good profits. Although the profits are good, they are not good enough in our view. The Net Profit Margin has been close to 2% since 1993 (Exhibit D).The cost of goods relative to the sales is high and is keeping the profit margin low. In other words, the costs have increased at a faster rate than sales. The Cost of Goods Sold is consistently around 75% of sales. Secondly, the Return on Assets is roughly 5% in 1995 (Exhibit D). This ratio is kept low due to a high total assets figure. Total assets are also inflated due to the liabilities taken in the form of trade credits by Mr. Clarkson The company is keeping a high volume of inventory in stock as shown...
Words: 825 - Pages: 4
... that is measured by both net sales and income increases from its operating stores. Its primary products and service lines generally lie within the competition of its Discount and Variety Retail, as well as Electronics and Drug stores, Pharmacies, Appliances, and Gasoline sales (Hoovers, 2008). Physical Assets Wal-Mart includes physical assets within its organization that are developed in such a way that allows for utilizing efficient methods in order to manage these assets. Such factors of its environment are quite evident in one example, its retail prices. This is important because in essence, if Wal-Mart was less efficient in managing its physical assets, more money will have to be spent, and profits will decrease (as a result of the lack in maximizing profits), and its competitors will drive it out of the market. However, this is not the case with Wal-Mart. The various consumer goods that it provides which are purchased are usually priced so low, driving other businesses out and keeping its customers happy...
Words: 1145 - Pages: 5
.../ 5 = $16,000. b. Collin’s Incremental After-Tax Return on Investment Additional Sales……………………………………………............ $80,000 Accounts Uncollectible (9% of New Sales)……………………… 7,200 Annual Incremental Revenue…………………………………….. 72,800 Collection Costs (5% of New Sales)…………………………….. 4,000 Production and Collection Costs (78% of New Sales)………… 62,400 Annual Income Before Taxes……………………………………. 6,400 Taxes………………………………………………………………. 1,920 Annual Incremental Income After Taxes……………………….. $ 4,480 c. Yes, I believe that Collins should liberalize credit if a 15 percent after-tax return on investment was required because the above calculations show a 28% return on investments (profit). d. The total incremental investment in accounts receivable and inventory to support an $80,000 increase in sales would be: $80,000 / 4 = $20,000. So the answer would be $20,000. e. Let’s add the $16,000 from a/r to the $20,000 in inventory. If so then we would get $36,000. Next we’ll take $4,480 (incremental income after taxes) divided by the $36,000 incremental investment giving us a 12.44% return on investment. If this were the information we were to consider than Collins should NOT extend more liberal credit terms because 12.44% is less than a 15% return on investment or ROI as...
Words: 251 - Pages: 2
...The similarities mentioned between the leaders all had common characteristics. Those included: • Humility • Energy • Intuition • Vision • Perspective • Passion • Conviction • Learning The leaders who were interviewed were from different industries, and countries around the world. They outlined how they themselves had been tested at times in their professional careers, and also personal times within their careers. They also talked about what leadership quality they had learned from their own experiences and which ones would have the greatest impact on them. The interview of Olli-Pekka Kallasvuo, the President and CEO of Nokia, spoke specifically about humility as a major key for him and in my own healthcare career, I could related. For me, it reminded me of why I went into Healthcare to begin with. To serve others quite simply. Like, Kallawvuo, humility is important for all of us. He spoke that in 1990, when he was 36 years old; he was named the Chief Financial Officer (CFO) at Nokia. This is a young age, even today for such a position. He mentions that he had a legal background rather than that of Accounting. The company at the time had a financial crisis to deal with. Meeting payroll was a concern. Part of his job required him to travel to various financial institutions to secure the necessary funds, which were very well aware of the company’s dire financial conditions, and as such were cautious. He went on to mention that during some of his trips...
Words: 671 - Pages: 3
... Problems Chapter 1 a) What is the total explicit, total implicit, and total Economic costs in 2010. Explicit costs are defined as monetary opportunity costs. Explicit costs would be the accounting costs listed =$628,000. Implicit costs are defined as nonmonetary opportunity costs. = $15,000 (this is potential gain in stocks) + 175,000 (salary) = $190,000 The economic costs would be the total of explicit plus implicit $818,000 b) What is accounting profit in 2010? The income statement shows the profit listed as $177,000. c) What is the economic profit in 2010? Economic profit would be accounting profit minus implicit costs. That would be: $177,000 minus $190,000. d) In reviewing the decision to leave his job and start Sound Devices the recent numbers will show a profit or a loss. A positive economic profit which means that he made the right decision. A negative economic profit would mean that he made the wrong decision. Chapter 2 Problem 2 a) The price of oranges will increase. The supply of oranges will decrease due to the destruction. b) The price of oranges will decrease. The supply of oranges will decrease. c) More demand for orange juice, Price will increase for oranges, Supply will be ready. d) Grapefruit may or may not have an effect. Maybe the price and supply will decrease. Problem #4 a) Air Travel demand will decrease. Price will increase. b) Hotel prices...
Words: 306 - Pages: 2
...2010, attributed to innovations and product introductions. * Diversified as better margin derived from the product brought in retailers in the form of club stores and other stores. Competitive Position: * Global Consumer Product Giant with over $13 billion in worldwide sales and $7 billion in gross profits for 2009 since its entry into the market in 1962 * Respected brand in non-disposable razor market. * 23.3% market share by volume of overall non-disposable razor unit and market leader in moderate non-disposable razor unit both by volume and dollar. * New players with technologically improved products posing a threat to Paramount. Strategic Life Cycle Challenges: Clean Edge Razor – based on superior technology and 5 blade design would give enormous boost in sales provided the product does not cannibalize the existing non-disposable razor segment that is doing fairly good for the company. With this objective in mind, company had to choose between three alternative strategies which are: Launching “Clean Edge” as a “mainstream” technology product to be a market leader Advantages: a) Increase in profits and market share. b) Opportunity for higher profit margin with new “premium”...
Words: 290 - Pages: 2
...Addendum Coral Divers A. Revenue Potential and Return on Investment Considering, the incremental return on investment, or the additional revenue generated from each resource profile investment. Each of the strategies has financial costs and benefits. These are discussed below. 1) Ten per cent increase through efficiency The efficiency improvement strategy carries no costs and should yield 10 per cent on the bottom line, or about an additional $12,100 profit. The calculations are: $550,000 annual revenue x 2% margin = $11,000 net profits $11,000 net profit x 10% efficiency improvement = $1,100 $11,000 + 1,100 = $12,100 increase in net profits 2) Add adventure diving The adventure diving resort strategy will require about $15,000 to get started. It should yield about $95,680 additional revenue. The calculations are: 8 divers per trip x $115 for each diver = $920 revenue per trip $920 each trip x 2 dives per week - $1,840 revenue per week $1,840 revenue per week x 52 weeks = $95,680 annual adventure diving revenue 3) Focus on family diving The family diving resort strategy will cost $60,000 to $160,000 (in renovations and improvements) and should yield at least an additional $157,000 over current revenues, assuming no increases in prices. If Coral Divers raises its prices to equal other family resorts, the revenues should be even higher. Two methods of calculation are shown below. Method 1: Occupancy during...
Words: 570 - Pages: 3
...Competitor-oriented Objectives: The Myth of Market Share J. Scott Armstrong, The Wharton School, University of Pennsylvania, Philadelphia, PA 19104 E-mail: armstrong@wharton.upenn.edu Phone 610-622-6480; Fax 215-898-2534 Kesten C. Green, Department of Econometrics and Business Statistics Monash University, VIC 3800, Australia E-mail: kesten@kestencgreen.com Phone +64 4 976 3243; Fax +64 4 473 0643 February 21, 2006 IJB05CmObj27.doc International Journal of Business (forthcoming) Abstract Competitor-oriented objectives, such as market-share targets, are promoted by academics and are commonly used by firms. A 1996 review of the evidence, summarized in this paper, indicated that competitor-oriented objectives reduce profitability. However, we found that this evidence has been ignored by managers. We then describe evidence from 12 new studies, one of which is introduced in this paper. This evidence supports the conclusion that competitor-oriented objectives are harmful, especially when managers receive information about market shares of competitors. Unfortunately, we expect that many firms will continue to use competitor-oriented objectives to the detriment of their profitability. Key words: competition, market share, objectives, profitability. JEL CLASSIFICATION: L21, M21, M31. 2 Many managers have a natural inclination to want to beat their competitors. Our concern in this paper is the relationship between competitor orientation and performance. We show that competitor-oriented...
Words: 8595 - Pages: 35
...CHAPTER 3 21、Profit Margin (1)Evaluate the grocery chain’s claim： 以“小孩子的一次跑腿都比公司赚得多”的对比回应对于公司定价过高的抱怨。 (2)Basis for the statement Grocery chain’PE===3% Child’“PE”(as the statement’logic)==6% 所以小孩赚的是杂货商的两倍。 (3)Is this claim misleading? Three perspectives: Ⅰ：小孩跑腿买50美元的东西赚了3美元与该公司的PE为3%没有任何可比性，这之间有概念混淆。小孩跑腿赚的3美元与50元的东西没有任何逻辑联系，两者相除没有任何意义，更谈不上与该公司PE做比较。 Ⅱ：3%的PE是否意味着公司赚得较少，而足够回应“东西买的太贵”的质疑？在财务中，我们一般用更全面的指标ROE和ROA来衡量公司的回报，即公司的盈利能力。 ROE===16.07% 并没有想象中那么小。 Ⅲ：不管是用PE还是ROE来衡量盈利能力，我们判断的出发点是会计意义上的，也即权责发生制。对于小孩而言，无论他去买多贵的东西他跑腿赚来的3美元是实实在在的，但对于题目中的杂货商而言或许情况就不那么简单了。 25、Ratios and Foreign Companies (1)Profit margin==-9.71% (2)No Difference in profit margin (3)Net loss in dollars=27413000×9.71%=2661802.3 CHAPTER 4 16、Full-Capacity Sales The sales in fixed asset=550000÷95%=578947.37 The rate of the sales’growth==5.26% 17、Fixed Assets and Capacity Usage “Assume the company maintains its current operating capacity.” Fixed asset turnover===1.31579 New fixed assets=630000÷1.31579-440000=38800 21、Sustainable Growth ROE==××= Profit margin×Total asset turnover× (Do Pont Identity)=4.8%×1.25×=17.14% b(Plowback ratio)=1-Payout ratio=70% Sustainable Growth===13.64% CHAPTER 5 9 、Calculating the Number of Periods FV=PV×(1+r)t→170000=40000×(1+5.3%)t T=28.02也即29年。 16、Calculating Rates of Return(TMCC) TMCC(PV:24099；FV:100000；NPER:30；public on March 28,2008) a、r=4.86%；b、r=3.93%(NPER:12,FV:38260) c、r=5.48%(NPER:18,FV:100000,PV:38260) 17、Calculating Present Values FV=PV×(1+r)t→170000=PV×(1+12%)9 ...
Words: 372 - Pages: 2
...Best Stock to Invest under 1000 Cr Market-Cap (Nilkamal Ltd) Nilkamal Ltd is principally engaged in manufacturing of injection moulded plastic products, currently it operates with three segments namely plastics, lifestyle furniture, furnishings accessories and storage system others. The plastics segment engaged in manufacturing of injection moulded plastic articles, polymers and others. The lifestyle furniture, furnishings accessories is engaged in manufacturing of home furniture, home furnishing and accessories. The storage system others is engaged in metal storage systems. The Group also sells lifestyle home furniture, furnishings, home decor and accessories through its own lifestyle retail stores in the name of home. The Group has seven large manufacturing plants in India having JVs with domestic and International companies, In India with Bito Lagertechnik Bittman GmbH for the manufacture of Material Handling and Storage Systems in Metal and globally in Sri Lanka, and Bangladesh, where both these companies are Leaders in respective markets for Moulded Furnitures. High/Lows & Performance of Nilkamal Ltd. | Duration | One Week | Two Week | One Month | Three Months | Six Month | One Year | Period Old Price | 241.40 | 224.60 | 219.95 | 229.60 | 225.85 | 260.35 | Price Gain | 9.85 | 26.65 | 31.30 | 21.65 | 25.40 | -9.10 | Price Gain in % | 4.08 | 11.87 | 14.23 | 9.43 | 11.25 | -3.50 | Period's High | 261.90 | 261.90 | 261.90 | 261.90 | 261.90...
Words: 1323 - Pages: 6
...Communication and the Audience BCOM 230 October 15, 2012 Hank Parisi Mary Anderson Michael Wolper Sara Slevin Suzanne Beal Cynthia Gernertt ACCOUNTANT-PEER E-MAIL TO ACCOUNTING DEPARTMENT From: Beth Riordan Manufacturing <beth@riordanmfg.com> To: Accounting Department Cc: John Subject: Status of Due Diligence Investigation All Concerned - Just an update on the DD report, everything went out as planned, the return data request included a checklist that covered the following areas; corporate matters, financial statements, tax/governmental reports and compliance, personal property, contracts and agreements, real property, intellectual property, insurance, litigation, affiliate transactions or arrangements, and environmental protection. I realize some of these areas may not apply to this particular company, but I wanted to make sure I covered all bases. Better to ask and have it not apply than not ask and miss important information. They have replied on some of the areas, mostly the easy ones that had little or nothing to report back, and they have addressed some of the financial information. However, there seems to be a little delay with most of what we need. I have had a few calls, most were asking for clarification on the data requested. Once I answered their questions, more calls came in requesting an extended due date. I have advised them that they need to get the information to us as quickly as possible and have suggested that...
Words: 1187 - Pages: 5
...Unit One: Case Study (MIP) Kaplan University – GB519 Measurement and Decision Making March 2010 What is the ROI for MIP based on original estimates? • Operating assets ( development costs were $140 million • Sales ( annual operating income was expected to be approximately $25 million ROI for MIP = 25 million / 140 million = .18% What is the ROI if Richard Lawrence’s new revenue projects are used? • likely generate operating income of just $17.5 million per year ROI for MIP with new figures = 17.5 million / 140 million = .13% Elaine feels pressure to deliver “good news” to Blake. What advice would you give to her? Given the possible personal financial rewards that Elaine may enjoy if GSM goes public, would your advice change? The truth in the figures is exactly what Elaine should be showing to Blake. Although the numbers are less than satisfactory to Blake and his expectations, the numbers are the numbers and should be reported appropriately. It would prove Elaine less than assertive and capable of doing her new job if she sugar coated the news. Managers and executives require solid information in order to make sound decisions. What responsibilities does Elaine have to other GSM employees, the board of directors, and the venture capitalists? Elaine’s duty is to report to Blake. However, this is information that also affects all those involved with the possibility of MIP going public. Because of this, Elaine...
Words: 1008 - Pages: 5
