2015 Pits Assignment Question Essay

1. Gross revenue as an indicator of performance is useful but has the limitation of being an absolute measure which may not reveal market shifts relative to competition.

* Our company’s sales forecast has been based on performance from previous years along with market circumstances. We are looking at the future of the business objectively which we then can evaluate past to

b) Additional sales dollars must be produced to cover each $1.00 of incremental advertising for Rash-Away

* In 2005, the profit was approximately ($144,000 / $5,500,000) 2.6% of sales; does this number indicate whether the company is doing well or not?

Option 1: Sales on Q1, Q3 and Q4 less 30% than Q2. That’s mean the volume of Q2 going to increase 30% than other and the commission will increase 30% as well

The company ended in the last place, and we know that there are areas of opportunities. In spite of this, out of the five performance areas, our weighted average scores were above the investor expected standards for Y2015. On the other hand, we never meet the image rating score of 70, and our EPS fell

* Refer sheet “25000 Sales” for cost incurred and Gain/loss for AIFS for different scenarios and actual sales volume of 25000.

a. Test market results for the southeast regions do not indicate an impressive gain in the market (i.e. market share increased from 9% to 10% when it was expected to reach 15%, display activity was below what the team expected)

There is a new commission based on the product gross margin , but neither commission will be paid until gross exceeded 70% at the early stages of the measuring year because the people will not be optimistic in achieving the 70% cap (de-motivating factor).

In a company like Bayonne Packaging, Inc., a printer and paper converter, it is very important that performance measures such as cost, quality and delivery are in agreement with the forecasted values since this firm used to compete based on low cost, good

Q.3 Why Superior Improved Profitability during the period January 1 to June 30, 2005? How useful was the data in Exhibit 4 for the purpose of this analysis?

6. What is your appraisal of Blue Nile’s financial performance based on the data in

The author states that the performance of a company cannot be considered as good if it is not on par with its competitors. For example, the present company has a customer satisfaction rating of 73%, whereas the average company has 76% and the top company has 87% out of a hundred. These statistics prove that the even though the present company is good, it is still not on par with the top company and that it requires further improvement to hold a good market value. The support costs per call can be considered good only when compared to the best

The performance had to be forced in a bell curve like curve where high performers could be maximum of 14%; Achievers (A) min 70%; Low Achievers (L) min 7% and Unacceptable (U).

At the end of quarter 2 the Gross Profit of the company was $ 1,031,772 with the operating profit $ 118,983. The company strived to achieve the operating profit in positive numbers however it was taken into consideration that the operating profit might result in negative numbers during the initial stage. However,