advantages of the new distribution and sales strategy are as follows: - Marketing resources would be immediately freed up to focus on the disposable market - B&L need to hold less inventory for the conventional lens - Possibly lower distribution cost due to shipment consolidation. B&L only need to ship to distributor warehouse instead of final customer location. Since distributor orders can be combined and
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in the ordinary course of business * Less estimated cost of completion * Less estimated cost to sell Fair value is: * The amount for which an asset could be exchanged‚ or a liability settled‚ * Between knowledgeable willing parties‚ in an arm’s length transaction. If the entity runs a retail business‚ then the inventory is generally called merchandise. A manufacturing business will generally call its inventory finished goods; work in process and raw materials. Inventory movement
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market margin of any potential option be positive. Marketing Margin = Revenue – Cost=Incremental Volume Generated by Sales Promotion * Price to Retailer -Direct Expenses1 -Indirect Expenses2 =Marketing Margin Change from promotion-Marketing Margin Change from promotion of other products Note: 1. Direct Expenses include Promotional Allowance‚ COGS and Distribution. 2. Indirect Expenses refer to Cannibalization Cost 2. Data. We use past sales and expenses data (Exhibit 1&4) to estimate the marketing
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Case 9-4: Cost Volume Profit (CVP) Analysis and Strategy: The ALLTEL Pavilion The ALLTEL Pavilion in Raleigh‚ North Carolina is an outdoor amphitheater that provides live concerts to the public from April through October each year. The seven-month season usually hosts an average of 40 concerts with 12 year-round staff planning and managing each season. SFX Entertainment Inc. operates the pavilion. SFX is the largest diversified promoter‚ producer‚ and venue operator for live entertainment events
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sales to regular customers a. Direct manuf labor - $10 b. Variable manuf overhead - $15 c. Fixed manuf overhead - $30 i. Total manuf costs - $105 Per unit cost when producing ANSWER: $85 2. Selected info regarding a company’s most recent quarter follows: a. Op expenses $700 b. Gross profit $2390 c. Sales rev $4000 d. End finished goods inventory $300 e. Cost of goods manuf $1200 ANSWER: $710 3. selected financial info for Brookeville manuf is presented in the following table a. sales rev $4k b
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its inventory levels and increased inventory turnover across the entire retail chains. This will result in reduction in holding and carrying cost. Operational expenses are reduced with planning for procurement‚ manufacturing‚ and transportation. Better order‚ product and execution tracking has lead to improvements in performance and quality - and lower costs. Question 2.Why has Inditex chosen to have both in-house manufacturing and outsourced manufacturing? Why has Inditex maintained manufacturing
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would you recommend that Pepe do? Give the data in the case‚ perform a financial analysis to evaluate the alternatives that you have identified( Assume that the new inventory could be valued as six week;s worth of the yearly cost of sales. Use a 30 percent inventory carrying cost rate.) Calculate a pay-back period for each alternative. In this case‚ Pepe Jeans has enjoyed considerable financial success with its current business model. However‚ on the other hand‚ individual retailers are compliant
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Assignment 2: LASA 2—Balanced Scorecard Report Cathy Jones Principles of Managerial Accounting Instructor Michelle Gonzalez July 19‚ 2012 Nordstrom‚ Inc.‚ an upscale department store chain which specializes in clothing‚ accessories‚ cosmetics and household furnishings‚ has hired you as a consultant to help them determine if their performance measures are supporting their company strategies‚ objectives‚ mission and goals. Nordstrom prides itself on providing quality service and high quality
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Actual revenue earned by Aalst in that quarter = 124‚080 Vehicles washed on average per hour during good weather = 24 Average revenue earned per vehicle = € 11 Hours of good weather in that quarter = 470 Hours of good bad in that quarter = 450 Vehicles washed on average per hour during bad weather = unknown variable x Those variables can be put into a mathematical equation where: (470 hours of good weather * 24 vehicles washed per hour * € 11 revenue per vehicle) + (450 hours of bad weather * x vehicles
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Programs‚ delivers the greatest gross margin dollars? Public courses produce the greatest gross margin in dollars. * What is the prior year to current year percentage change in cost of sales‚ how does this compare to the prior year to current year percentage increase in revenue? The percentage increase in the cost of sales is 5.79% from 1984 to 1985. 2395-2264= 131 131/2264=
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