000 $273‚000 $78‚000 $949‚000 $130‚000 $130‚000 $65‚000 $162‚500* $461‚500 $30‚000 $431‚500 $215‚750 $215‚750 $245‚750 1.2 years Sales and costs (percentages are relative to gross sales‚ unless stated otherwise) Gross sales Food sales Beverage sales Food cost‚ % of food sales Beverage cost‚ % of beverage sales Gross profit Labor‚ benefits Advertising Rent Other (supplies‚ misc.‚ utilities‚ admin‚ maint‚ Insurance‚ royalties) Typical restaurant 100% 70-80% 20-30% 38-48% 25-30% 55-65% 35-40% 0
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Company’s runs two business units‚ confectionery and entertainment (Edmonds‚ Olds‚ McNair‚ & Tsay‚ 2010). Their financial situation changed from the year 2004 to the year 2006. Their focus changed in 2006 with 80% of the employees reporting profit and loss to someone compared to 20% reporting before the change and also started performance tracking of their employees (Edmonds‚ Olds‚ McNair‚ & Tsay‚ 2010). This change put their focus on profitability and employee relations. Topps Company
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grinding‚ and packaging of Aloha coffees. Executives have left little control to plant managers because‚ although executives have control of inputs‚ each of the plants it still responsible with its profits and losses. Plant manger’s bonuses are also based on the percentage of his or her plant’s gross margin. This is the reason Lisa Anderson‚ plant manager‚ states her frustration at the beginning of the case. Plant managers more likely have a better idea of the way the production schedule for the
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Unfortunately‚ Couch is not a strong performer; the lawnmower market is in decline and profits have slipped. Salt Water is known for its modern management systems and would like all managers at Couch to participate in the performance-related pay system that is used in the other two divisions. The profit-sharing plan applies to senior divisional managers only. It is based on placing 10 percent of Salt Water’s profits before interest and income tax into a pool‚ which is then shared by the senior divisional
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Group Case ALPES S.A.: A Joint Proposal Table of Contents Topic Page Problem Identification 1 External Analysis 1 Internal Analysis 3 Financial Analysis 5 Alternatives 5 Decision Criteria 6 Evaluation of Alternatives 6 Recommendation 6 Action Plan 7 Contingency Plan 7 Appendix 8 Key Problem Identification: The main issue in this case surrounds Dennis Shaughnessy‚ senior vice-president for Corporate Development and general counsel for Charles River Laboratories (CRL)
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its sales volume and sales income are second-lowest in the industry‚ it has the highest profits‚ due to its high profit margins. Beaver is the industry’s largest company. It has the lowest prices and highest sales‚ but its profits are second to Acme’s. Canco is second-largest in sales but only third in profits‚ and is regarded as having fallen short of its potential. Deeco has the lowest sales and profits in the industry by far. Industry Sales Total industry sales have grown briskly over
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collection period | 50.7 days | 55.8 days | 58 days | 46 days | Total asset turnover(times) | 1.5 | 1.5 | 1.6 | 2.0 | Debt ratio | 45.8% | 54.3% | 57% | 24.5% | Times interest earned ratio | 2.2 | 1.9 | 1.6 | 2.5 | Gross profit margin | 27.5% | 28.0% | 27% | 26.0% | Net profit margin | 1.1% | 1.0% | 0.7% | 1.2% | Return on total assets (ROA) | 1.7% | 1.5% | 1.1% | 2.4% | Return on common equity (ROE) | 3.1% | 3.3% | 2.6% | 3.2% | Price/ earnings (P/E) ratio | 33.5 | 38.7 | 34.48% | 43
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lowers revenues and eventually affects profitability especially if expenses incurred exceed revenues gained. As a result the artist then gain a lower share of profits so as her agents‚ promoters and record label. Exhibit 1 below shows the economics of the big and small venue. The small venue tour is not profitable as shown by the loss of profit/show (due to high cost incurred) and overall show profitability loss of $ 3‚450‚000 against $6 million start up costs. However the big arena tour is profitable
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with the market niche strategy. Although there is a decrease in profitability‚ the company is still profitable and there is no risk of losing profits or customers since there are no changes. Disadvantages: The current costing system has some loopholes that result in the lack of efficiency‚ which in turn leads to the decline in profits. Since the company pays the employees as it planned‚ there would be zero labor rate variance. The only existing variance that leads to the difference
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• Profitability Procter & Gamble’s Gross Profit Margin (GPM) increased in 2010 by 2.41%‚ however it decreased in 2011 by 1.34%‚ while Net Sales continued to increase from 2009 to 2011. This trend was due to a price fluctuation in Cost of Goods Sold. The GPM directly affected the Operating Profit Margin (OPM)‚ which also increased in 2010 by 0.25% and decreased in 2011 by 1.14%. The Operating expenses were somewhat stable‚ which resulted in the OPM ratios following a similar trend as the GPM
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