9/16/2012 1. Why was Dakota’s existing pricing system inadequate for its current operating environment? Profit margins varied based upon the size of the order‚ larger orders were more profitable than small orders. Based upon customer order size‚ prices should have been varied and the cost determination of the DOP should have been evaluated as it generated a loss. 2. Develop an ABC system for Dakota based on Year 2000 data. Calculate the activity cost-diver rate for each activity in 2000. a
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to predict the demand and the profit to choose the right supply chain. It must consider demand predictability‚ product life cycle‚ market standard response‚ product variety‚ and service. When products have a stable demand as milk ‚ brain ‚ basic products pattern and therefore are reasonably predictable‚ the planning of their supply is easy although the competition is intense and the profit is low. On the other hand are unpredictable products often carry higher profit; these products are innovative
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to user Ryanair services instead. However‚ when we examine the cost structure‚ we see that even at 100% load‚ Ryanair’s Operating Profits are negative at I£ 98 ticket price per passenger. And even though the lowest price strategy might help Ryanair win more customers from competition and simulating demand from rail-ferry passengers‚ its over all Operating Profit margin may not improve drastically‚ unless Cost structure is revised and reduced. Assumptions for the Cost Leader strategy (Column
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x Ratings | = Values | Market size | 0.30 | 3 | 0.90 | Growth rate | 0.20 | 2 | 0.40 | Profit margin | 0.25 | 2 | 0.50 | Market diversity | 0.15 | 1 | 0.15 | Industry profitability | 0.10 | 1 | 0.10 | | 1.00 | 1 to 3 | 2.05 | Fanta USA Criteria | Weights | x Ratings | = Values | Market size | 0.30 | 3 | 0.90 | Growth rate | 0.20 | 2 | 0.40 | Profit margin | 0.25 | 2 | 0.50 | Market diversity | 0.15 | 1 | 0.15 | Industry profitability |
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school diploma‚ or has only finished high school‚ the income range will remain in the lower-middle range‚ which means that Hutch targets the biggest segment of potential customers. 2) Our primary objective moving forward involves increasing the profit by 10% before SG&A‚ overhead and taxes by either a) reallocate budgets for promotion and advertisement‚ b) change trade promotion strategy‚ or c) increase the price of our product. a) Since baking soda is not a natural traffic builder it needs
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the organization. organization. 11-4 Responsibility Accounting Cost Cost Center Center Cost‚ profit‚ and investment centers are all known as responsibility centers. Profit Profit Center Center Responsibility Responsibility Center Center Investment Investment Center Center 11-5 Cost Center A segment whose manager has control over costs‚ but not over revenues or investment funds. 11-6 Profit Center A segment whose manager has control over both costs and revenues‚ but no control over investment
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bank generates revenue through interest making on loans. Secondly‚ I conclude the variation in profit across customers. As reflected by my findings‚ customer contribution to the bank earnings was varied substantially. A small group of customers generated the profit several times more than that of the majority of the customer base. In our case‚ 10% of the customers generated 70% of Pilgrim bank’s profits. Based on the variation we observed‚ on the one hand‚ I recommend the use of stratified customer
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EVA an MVA and how they are calculated and how they compare with traditional measures of a firm’s financial performance. A1: Economic Value added (EVA) is a financial performance method to calculate the true economic profit of a corporation. EVA can be calculated as Net Operating Profit After Tax minus a charge for the opportunity cost of the capital invested. EVA is an estimate of the amount that earnings differ from the required minimum rate of return for shareholders or lenders. The difference can
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Ethics of Profit‚ Part 3: The Profit Motive Posted March 29‚ 2011 Filed under: character‚ competition‚ corporations‚ decision-making‚ ethics‚ finance‚profits‚ white collar crime | This is the third in a 3-part series on the ethics of profit. (See also Part 1 and Part 2.) As mentioned in previous postings‚ we should distinguish between our ethical evaluation of profit per se (which‚ after all‚ just means financial “gain”)‚ and our ethical evaluation of the profit motive. After all‚ I don’t worry
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Name of the Business: Haefren Baum Nature of the Business: Haefren Baum is a retail home furnishing company‚ which has recently expanded to include three outlet stores. Marketing Analysis: Situated in downtown Cologne‚ Haefren Baum is high-end retailer of home furnishing. When it comes to marketing‚ Haefren Baum could not have picked a better company to establish a partnership because the Wiegandt company has established its name in the industry‚ and is highly advertised. Competition is evident
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