CMA GEN

CMA PROGRAM
Edsa Shangrila, Mandaluyong City

TAYLOR CORPORATION
(A case study in Strategic Objectives)

SUBMITTED BY:
GENERATION

M. I.

Prepared by: Belen, Rhean C.
Members:
Agulan, Jona Shane
Alcazar, Crizelda
Chan, Gwendolyn
Larcena, Andrew
Garces, Racquel
Salamat, Arlenie
Yee, Winston

9-May-15

Over-all Given:
Investment : $ 500,000.00
Market Share: 20 %
Current Operational Cash - Based Revenue & Cost
Current Sales @ $ 100 per units
$ 1,000,000.00
Less: Volume- related variable cost
(500,000.00)
Non-Volume-related variable cost
(300,000.00)
Cash based Earnings before interest & taxes $
200,000.00

Accounting strategy
Given :
Initial Investment : $100,000.00
Expected share: 25%
Period: Constant at 3 years

Promotion outlay
Expected Inflows
2,500 units Increase @ 100
Expected Outflows
VCost Increase (2,500 units @ 50)
FxCost Increase (300,000x10%)
Net Cashflows
10% DCF
NPV

Computation:
Sales/ Per unit

$

Period 0
Period 1
(100,000.00) $
-

$

250,000.00

(100,000.00) $
1
(100,000.00) $

1,000,000.00
100 units

$

Period 2
-

= 10,000 @25 %

= 2,500 units

Period 3
$

250,000.00

-

$

250,000.00

(125,000.00) (125,000.00)
(30,000.00)
(30,000.00)
95,000.00 $ 95,000.00 $
0.9091
0.8264
86,363.64 $ 78,512.40 $

(125,000.00)
(30,000.00)
95,000.00
0.7513
71,374.91 $

Total
(100,000.00)
750,000.00
(375,000.00)
(90,000.00)

136,250.94

Legend
Vcost=Variable Cost
FxCost=Fixed Cost

Marketing strategy
Given :
Initial Investment : $200,000.00
Expected share: 10%
Period: Y1 $ 165,000.00; Y2 $ 50,000.00
Y3 $ 30,000.00

Promotion outlay
Expected Inflows
5,000 units Increase @ 100
Expected Outflows
VCost Increase (5,000 units @ 50)
FxCost Increase (300,000x10%)
Net Cashflows
10% DCF
NPV
Legend
Vcost=Variable Cost
FxCost=Fixed Cost

Computation:
Sales/ Per unit

$

= 5,000 units

Period 0
Period 1
Period 2
(200,000.00) $ (165,000.00) $ (50,000.00) $
-

$

500,000.00
100 units

(200,000.00) $
1
(200,000.00) $

500,000.00

500,000.00

(250,000.00) (250,000.00)
(30,000.00)