Westwood’s Gross Margin Percentage is calculated as (sales less cost of goods sold) as a percentage of net sales revenue. For Westwood it’s calculated as follows based on the financial statements (all in millions of dollars): 2010 Gross Margin: (2000-1100) = 900 2010 Sales Revenue = 2000 2010 Gross Margin Percentage = 45% 2009 Gross Margin: (1500 – 800) = 700 2009 Sales Revenue = 1500 2009 Gross Margin Percentage = 46.7% Westwood’s Pre-Tax Return on Sales is calculated as: 2010 Pre-tax
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• The IT-BPM sector in India is estimated to expand at a CAGR of 9.5 per cent to USD300 billion by 2020. The sector increased at a CAGR of 25 per cent over 2000–13‚ 3-4 times higher than global IT-BPM spend • India is the world’s largest sourcing destination‚ accounting for approximately 52 per cent of the USD124–130 billion market. The country’s cost competitiveness in providing IT services‚ which is approximately 3-4 times cheaper than the US continues to
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Do not represent a revenue because b. It not represents revenue to the firm during the month of May‚ because the receivable was originated in August. c. d. e. Yes‚ represent revenue in May‚ because the services were rendered in May. Brief Exercise 3.8‚ page 121. a. The purchase of the copying machine is an Expense‚ because is going to be used uo in the process of earning revenue. b. It is an expense‚ because the delivery would help to do the job and have revenue. c. It is an expense
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performance gaps. We have compared our performance measures with our objectives‚ market average and our top two competitors. This section shows these comparisons with all ten of our performance measures: Occupancy percentage‚ Rooms Revenue‚ Total Revenue‚ Market Share based on Revenue‚ RevPAR‚ ADR‚ Yield Management‚ Operating Efficiency Ratio‚ and Profit Margin. Section 3 of this paper focuses on the causes behind our top 3 performance gaps. We have previously determined our top 3 performance gaps to
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LO 6-1 MSC: AACSB Communication 5. Owner’s equity can be increased through a. withdrawals by the owner. b. investments by the owner. c. expenses exceeding revenues. d. purchases of assets for cash. ANS: B DIF: Easy OBJ: LO 6-1 MSC: AACSB Communication 6. The balance in an expense account is closed to a(n) a. capital account. b. revenue account. c. drawing account. d. income summary account. ANS: D DIF: Easy OBJ: LO 6-2 MSC: AACSB Communication 7. The order in which financial statements
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positioning strategy. Male viewership is low‚ which acts as a deterrent. Women between 35-54 are their avid viewers‚ but unable to capture 18-34 market. Opportunities: By targeting high value viewers it can substantially grow its advertisement revenue. They have to understand changing mindset of the viewers Threats: CNN and Lifetime are giving cut throat competition . CNN has already increasing male viewership. Lifetime is attracting younger female demographics. According to Alpha research
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advise him to take the loan in an attempt to grow the business. One alarming fact about his business is the lack of a sales staff‚ yet the revenue has been able to grow at a fast pace; 18% in 1989‚ 34% in 1990‚ 19% in 1991. By adding another an experienced salesman that is working for a base salary plus commission‚ they can grow the revenues even more. By having this person work on commission‚ this will eat into the profit margin for the materials he is selling. But the net impact
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their net income‚ Flores has suggested three options as follows. Option 1 is to increase the price to $1‚000 per hour while reduce demand by 30%; option 2 is to reduce the price to $600 per hour while increase demand by 30%; option 3 is to increase revenue hours by up to 30% through increasing their promotion cost. Each option will affect net income in the following ways: For option 1: Profit 1 = 205 hours * $400 per hour + $1‚000 per hour * (138 * 70%) hours – total hours (205 + 138 * 70%) * variable
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whole. Still‚ we finished with revenue growth of 16 percent—and that’s significant. We believe it’s a good indication that Sun continued to pull away from the pack and gain market share. For that‚ we owe a debt of gratitude to our employees worldwide‚ who aggressively brought costs down—even as they continued to bring exciting new products to market.” The statement would not appear to be telling you enough. For example‚ McNealy says the year was a mixed bag with revenue growth of 16 percent. But what
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grouped by broad categories of revenues and expenses. The income statement begins with revenues followed by a list of expenses. U.S. GAAP and IFRS requirements for the presentation of income statements are similar‚ with some important differences. *Other than separating revenues from expenses‚ U.S. GAAP provides little guidance about which items the firm must separately display or their order. IFRS requires‚ at a minimum‚ the separate display of revenues‚ financing costs (for example‚ interest
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