A Report On Abc Company

1359 Words Jun 28th, 2015 6 Pages
ABC Company is a manufacturing firm that specializes in making cedar roofing and siding shingles. The company currently has annual sales of around $1.2 million, which is a 25% increase from the previous year. The company has a very aggressive growth target of reaching $3 million annual sales within the next three years. The CEO of ABC Company would like to begin a new project, using some of the shingle scrap materials to build cedar dollhouses, this opportunity could help ABC Company in reaching those growth targets. The new dollhouse product line would be able to leverage ABC Company’s existing manufacturing facilities and the current staff, but the project will add additional raw materials and be more time-intensive to manufacture than current products. As the corporate controller I have created this report that will provide the necessary details about the estimated product costs, the amount of sales that is needed to break even on the project, and what level of return this product is expected to provide.
Risk Profile
ABC Company is utilizing an aggressive growth approach, this aggressive growth approach increases the company’s exposure to many risk factors. When attempting to increase sales by launching a new product increases the risk of acceptability of customers. As the new product matures into the market, there will be a risk of competitors launching similar products, which could result in a loss of market share. Manufacturing of the new product requires raw…

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