that it will provide more accurate information about their manufacturing cost structure‚ as well as the costs of supplying individual customers and orders. With this new information‚ Kanthal plans to redirect its resources to customers with hidden profits and reduce efforts that are focused on customers with hidden losses. The ultimate purpose for this system change is to achieve higher growth and profitability. PROBLEMS‚ ANSWERS & SOLUTIONS: Question 1: Why have selling administrative costs not
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of a typical customer in each of the four segments‚ in current dollar values? Compare these figures to the “Gross margin” figures in the original spreadsheet. What can you learn from this comparison? Solution 1 Following are the lifetime value of a typical customer in each of the four segments‚ in current dollar values. Segments / Segment description Customer lifetime value Gross margins Large accounts $78‚454 $63‚000 Large accounts‚ rebate $70‚769 $36‚000 Small accounts $10‚679 $10‚800 Small
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8-33 a. Gross margin percentage for drug and nondrug sales is as follows: DRUGS NONDRUGS 2007 2006 2005 2004 40.6% 42.2% 42.1% 42.3% 32.0% 32.0% 31.9% 31.8% The explanation given by Adams is correct in part‚ but appears to be overstated. The gross margin percentage for nondrugs is approximately consistent. For drugs‚ the percent dropped significantly in the current year‚ far more than industry declines. The percent had been extremely stable before 2007. In dollars‚ the difference is approximately
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and they were committed to growing volume to generate a positive gross margin. But problems in cost calculation need to be tackled in order to generate the biggest profit. 2. The Issue: For the year ended June 30‚ 1999‚ Hollydazzle’s actual performance was as follows: It had 50‚000 transactions and revenues of $450‚000. The company’s actual gross margin was -$53‚500‚ or a unit cost of $-1.07. In this situation the Gross Profit is negative. 3. The questions/assumptions and answers Assumption
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average growth of 9% (2013-2015)‚ 2) gross margins to average at 37% (2013-2015)‚ 3) average market share of ICH to remain 50% (2013-2015) and 4) incoming international traffic to average at 650mn min/month. The key risks to our estimates are 1) ICH is terminated‚ 2) Upsurge in discount rate‚ 3) More than expected decline in incoming minutes and 4) No dividend payout in CY13. PTC Financial Snapshot CY12A CY13E Net Sales (Rs mn) 67‚838 77‚495 Profit after Taxation (Rs mn) 3‚641 13‚302
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Research Analysis Project Analysis of Business and Financial performance of Atlas Honda Limited over three year period Research and Analysis Project (6‚478 words) Research Analysis Project Introduction The topic I selected for my thesis is: “The business and financial performance of an organization over a three year period” I selected this area for my research as analyzing the financial aspects of company will brush up on my analytical skills
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per batch and per bottle for each beer label. 2. To find gross margin for each batch‚ we need to know how much they earn by selling one single beer. Use the information from Exhibit 1 and 2; we can know the total cost of each bottle of label. Take away the cost from the selling price‚ and it will give us the gross margin of selling one beer. Multiply the number to the “number of bottle in a batch”‚ to get the gross margin for a batch. 3. The benefits of using Plant-wide allocation
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readymade Garments Industry. It also performs the following services:- • Dying & Post Mercerization. • Fabric Dying 1.4 STRATEGIC GOALS & OBJECTIVES: The company sets the following objectives for it to achieve: • To strive hard to optimize profit through conduction of transparent business operations within the legal and social framework with malice to none and justice for all • To create more jobs with minimum investments • To be competitive in the internal as well as external markets •
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less brand that reinforces low price commitment | Improving website | Commitment to exceptional value | | | What is the broader message from this information? | Delivery of superior guest (customer) experience Drive growth up‚ enhance gross margins and profitabilityImprove experience of management and invest
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Question 1: Incremental Customer Lifetime Value Calculated using revenue per costumers (ARPU) at 21 month average life time and 10% per annum discount rate. Average life time | | 21 | months | | | Discount rate | | 10 | % = | 0.83% | per month | | Average customers | YBB customers | | | | ARPU/month | 24 | 29 | | | | NPV | $460.61 | $556.57 | | | | Incremental value | | $95.96 | | | | Question 2: Sensitivity Analysis on Incremental Lifetime value of YBB
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