feeders? a. Customers may have been provided choices for limited customization‚ such as variety of colours or finishing’s they can get it in‚ but not to the extent where the details would consume more labour time resulting to a reduction in profit margins. Pricing would not be fixed at $10 for customization. It should vary depending on the amount and intricacy of the customization requested for. b. 4. How should McMaster analyze the alternative expansion options? Which would you recommend: a
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example suppose that you manufacture regular and premium golf carts. The selling price‚ variable costs and manufacturing times are as follows: Regular Premium SALES PRICE $ 8‚000 $ 10‚000 VARIABLE COST 5‚600 6‚500 CONTRIBUTION MARGIN $ 2‚400 $ 3‚500 Assembly hours 20 50 Inspect and Test 5.0 2.5 Your company currently has 10‚000 hours available for assembly and 1‚200 hours for inspection and testing. There is
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convenience-oriented‚ and value-conscious families with children under the age of twelve‚ estimated to be about 35 percent of Internet users. The firm’s warehouse distribution model results in higher net margins‚ as well as greater selection and convenience for customers‚ when compared to traditional retailers. Gross profit margins are expected to average about 30 percent each year. Because of relatively high marketing expenditures aimed at gaining market share‚ the firm is expected to suffer net losses for two years
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their business in 608 warehouses internationally‚ and continue to grow. Costco is a highly profitable‚ well functioning business. Costco only marks up their item’s selling price 15% from original cost‚ which gives them a low profit margin of 1.7%. With such a low margin‚ it brings into question how Costco is able to make so much money. There are a variety of ways that Costco makes money: Membership Fees‚ Rapid Inventory Turnover‚ Affordability‚ private label brands‚ premium products and effective
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group increased by 25 % from € 23.3 billion to € 29.2 billion while there was a slight reduction in net industrial debt which now stands at € 8.0 billion. The outstanding improvement in net profit and EBIT was led by a strong improvement in NAFTA margin from 4.9 % in Q2 2014 to 7.7 % in Q2 2015. FCA’s worldwide sales rose 5 % to 762‚000 for the quarter‚ including a 6 % increase in U.S. retail sales to individual buyers. Segment Wise Performance: The NAFTA region was the best pick out of all
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has increased over the past several years. So the company is moving in the right direction as far as broaden their differentiation strategy. The next exhibit shows how Netflix compares to the its main competition and how the company’s net profit margin exceeds a competitor like Blockbuster. The attached SWOT analysis for Netflix mentions some very important points that are associated with a focused differentiation strategy. The company is staying committed to how to service the niche better
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quickly respond to changing fashions while deliberately under producing products. This strategy‚ which is supported by competencies in logistic management‚ design and information systems‚ allows the company to maintain less inventory and higher profit margins and is a key factor to Zara’s success. The firm should continue to add value by seeking new opportunities to expand in the retail market and maintain their sustainable growth. Financial Analysis Being aware of a company’s financial health and
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Strategic Report for Netflix‚ Inc. Hillary Carroll Alex Menenberg Ian Kwok April 20‚ 2009 Netflix‚ Inc. Table of Contents Executive Summary..........................................................................................................................3 History .............................................................................................................................................5 Business Model ............................................................
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Assignment #1: Caribbean Intern Café Date: November 14‚ 2012 1. There are many issues that Mr. Grant should consider before proceeding with the CIC. There are several things that Mr. Grant should examine before even looking at the projections given to him. Total capital is $2‚250‚000‚ $1‚000‚000 in investments and $1‚250‚000 in the form of a long-term loan. $1‚573‚000 is immediately spent leaving $677‚000. If he has no customers‚ he can afford to remain open for 3 months. As well‚ they
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Quiz 2 Answers (10 POINTS) Question 1 (2 points) The Hansen Company has 3 product lines of tires - X‚ Y‚ and Z with contribution margins of $3‚ $5‚ and $7 respectively. Management expects a sales mix as follows: 90‚000 units of tire X‚ 60‚000 units of tire Y‚ and 50‚000 tires of Z in September 2009. Hansen’s fixed costs are expected to be $552‚000 for the same month. 1. Determine the breakeven point in units for X‚ Y‚ and Z respectively 2. Determine the operating income at a total sales level
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