1‚035‚688.31. b. What level of operations must be achieved to pay the extra dividend‚ ignoring union demands? In order to pay the 50% extra dividend and to retain $150‚000 profit the firm needs $600‚000 profit after taxes and because half of the profit goes through the government the firm needs profit before taxes of $1‚200‚000. c. What level of operations must be achieved to meet the union demands‚ ignoring break-even points? FC + Union Demands/Unit Contribution to Sales
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action is a financing issue because it controls the cost of financing. On the other hand‚ repurchase of stock can adjust shareholder distribution. If shareholders consist of most individual investors‚ they may require more dividends or other forms of profit sharing. Firm can repurchase stocks from such investors so that they can adjust their dividend policy. If management holds few shares of the company‚ they may lose their control over operating and strategy decisions. By repurchasing stocks‚ management
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largest clothing apparel company. We have grown to be the 6th largest and had four successful acquisitions. Our success in the past eight years has shown our revenue stream at 1500% and profits at 500%. Over the last 2 years‚ the company has been in a loss position due to aggressive growth and operational costs. Profit margin has declined from 23.52% to 9.91% as a result of increased selling and General Administrative costs outpacing sales revenues. The ROA for 1987 was 8.59% and for 1988 4.65% is declining
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to promote by developing multigame ticket packages. Conjoint analysis technique is used to design the survey and analyze the result. According to the situation‚ we assume that the new promotion program needs to increase the attendance numbers and profit. Question 1 To judge which attribute indicate is the overall most important in the purchase decision‚ we calculated the importance of each attribute according to the utility score data (Case‚ Table 1). The results are shown in Decision Weight
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example‚ the "gross margin" is the gross profit from operations divided by the total sales or revenues of a company‚ expressed in percentage terms. In isolation‚ a financial ratio is a useless piece of information. In context‚ however‚ a financial ratio can give a financial analyst an excellent picture of a company’s situation and the trends that are developing. A ratio gains utility by comparison to other data and standards. Taking our example‚ a gross profit margin for a company of 25% is meaningless
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Assessment 2 – Individual By – Andrew Chan WILKERSON COMPANY Overview Wilkerson Company is facing a decline in profits and has attributed this to a severe price cutting exercise in their Pumps line of products‚ dropping the company’s pre-tax margin to less than 3%‚ far below the historically healthy 10% margins. It appears that gross margins on pump sales in the latest month had fallen below 20%‚ well below the budgeted gross margin of 35%. Although a recent increase to Flow Controllers
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percent. Hence hotel must rent approximately 56 rooms per night to breakeven 2. The hotel is full on weekends in the ski season. If all room rates were raised $5 on weekend nights‚ but occupancy fell to 72 rooms instead of 80‚ what is the revised profit before taxes for the year‚ per Exhibit 1? 3. What is the proposed incremental contribution margin per occupied room/day during the off-season? Assuming 40% occupancy that can be expected due to the advertising budget 4. For each alternative
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directs and develops strategies for all marketing programs. A compensation Package should includes salaries‚ profit-sharing and bonuses‚ paid annual leave‚ and nonmonetary benefits. Generally a vice-president receives a base salary‚ as well as other forms of compensation‚ because this role often plays a critical part in an organization’s overall success. Others such as bonus and profit-sharing‚ are typically based the marketing team’s and organization’s overall performance. According to reports
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| 2002 | 2007 | 2009 | 2010 | 2011 | Net profit margin | 7.55 | 5.39 | 6.36 | 7.25 | 7.46 | Gross profit margin | | | | | | Operating margin | 12.06 | 8.37 | 10.41 | 12 | 12.1 | Expense per revenue | | | | | | ROE | 14.06 | 12.88 | 14.41 | 18.78 | 20.75 | ROA | 10.9 | 8.22 | 10.28 | 12.1 | 13.23 | Current ratio | 1.83 | 1.19 | 2.26 | 1.56 | 1.48 | Working capital | 26937 | 24355 | 179825 | 119169 | 114785 | Total debt-asset ratio | 16.67 | 35.86 | 28.68 | 35.58 | 36.23
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have much impact on business profitability and performance. With the implementation of the ABC methodology‚ companies are able to pinpoint the products that are most profitable‚ determine what contributes to financial performance‚ forecast costs‚ profits‚ and amount of resources needed‚ identify the root of poor financial performance and better track costs of activities and processes. (Johnson‚ n.d.). Economic value added is a performance measure used to enable companies to improve financial efficiency
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