Comments and Solutions for Lesson 4 Cases
Of all the topics in this course, many students find Lesson 4 to be the most frustrating. I think this may be due in part to an apparent contradiction: there are lots of numbers and equations to work with, but surprisingly little certainty in our conclusions. I share your frustrations at times. Fortunately, these cases are the only “strictly financial” case studies … the only ones where number crunching is an end unto itself. However, basic financial analysis will always be an important part of our toolkit for making pricing decisions.
The document which follows contains the “answers” to these two case study assignments: Ace Manufacturing and Healthy Spring Water. Despite the
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Costs |675,000 |$735,000 |4.50 |$2.00 |4.08 |
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|Total Costs |1,875,000
Think about the following statement: “Only communities located downstream in a watershed need to be concerned about how the water resources are managed in the watershed.” In my opinion, I strongly disagree with this statement. This essay will explain why even communities upstream a watershed should be concerned due to acid rain, and the risk of contaminated drinking water.
It can be used to pay the dividends, no matter the preferred dividend and common dividends. So the company need enough retaining earnings to pay these dividends to let the shareholders invest in the company. So there will be a retaining earnings.
Another problem adopting Roomis is that their ally in US Natex is unreliable as there were often delays and is not very efficient in carrying out the operation. Not being able to supply goods on time affects the goodwill relationship which the company has with its customers which can cause the company its market share. Once the company loses its market share then it will be difficult to regain it back. Also company policy of maintaining low inventory levels to free up capital would require a very efficient supply chain system to maintain the production process flow. So Roomis needs to revamp itself in terms of service levels to meet customer expectation and RMM has to figure out a way to do so.
The largest floor covering product is carpet and rugs followed by ceramic tile, vinyl, hardwood, stone, laminate and rubber floorings.
National Fabricators Inc. is a company that specializes in the manufacturing of lockers, school furniture, toilet partitions, steel shelving, and is now currently owned by Tom Kruger after buying out $75,000 of shares from shareholders in 1992. The industry is very competitive as costs are rising and prices being cut while the economy declines at the same time. As the president of National Fabricators, Tom Kruger needs to bring the company back on its feet in order to generate profits and reduce its losses of $480,315 and outstanding bank loans of $784,000. Tom Kruger also predicts that sales would fall as much as 10% during the 1994 fiscal year due to government cutbacks on medical and educational spending as
Forecasting activity being carried on by the principals of Fantastic for their business of ceiling fans marketing and assembling that was rapidly growing. Basic purpose behind making the forecasts was the decision on assembling and importing ceiling fans. The idea was to find a low priced, “assemble it yourself fan” from Taiwan and Hong Kong. These ceiling fans were cost effective as they reduced cooling cost during summer and heating cost during winter.
Water contamination is vastly becoming an alarming issue across the world. We rely on clean water to survive, yet right now we are heading towards a water crisis. Changing climate patterns are threatening lakes and rivers, and key sources that we tap for drinking water are being overdrawn or tainted with pollution (www.nrdc.org). Clean and plentiful water is the cornerstone of prosperous communities. Yet as we enter the 21st century, swelling demand and changing climate patterns are
Q1. Based on the 2004 statement of profit and loss data (Exhibits 1 and 2), do you agree with Water’s decision to keep product 103?
My review and analysis focused on the following sources: 1) peer review scientific journal, 2) popular articles including magazine and newspaper commentaries, 3) water right contracts, 4) legal cases including case law, and 5) various environmental assessments. Whenever possible I site source, papers, and evidence.
Over the past decade, the Healthy Spring Water Company’s sales grew rapidly due to increasing concerns about water quality. In recent years, however, the company’s sales have been stagnant. The problem is that the market for spring water grew large enough that grocery stores began to carry it, at prices somewhat below those of Healthy Spring. Consequently, the grocery stores are enjoying most of the benefit of continued growth in this market.
Case Name The Smithson’s Mortgage Case Study Teams This case is designed to be conducted by a team of students. The discussion, questioning, and resolution of differences is an important part of the learning experience. Another significant advantage is the sharing of the workload in preparing the final case study report. Knowledge Background This case draws heavily on the material presented in Chapters 2 and 3 of Principles of Engineering Economic Analysis, 4th Edition by White, Case, Pratt, and Agee, particularly Section 3.4 (Principal Amount and Interest Amount in Loan Payments). To a limited extent it draws on concepts from Chapter 4 (Measuring the Worth of Investments), Chapter 5 (Comparison
Do you agree with Water’s decision to keep product 103? Continue Production End Production Sales (Net) $ 26,670,000 $ - (Less) Rent $ 1,882,000 $ 1,882,000 Property Taxes $ 401,000 $ 401,000 Property Insurance $ 534,000 $ 534,000 Compensation Ins. $ 458,000 $ - Direct Labor $ 6,879,000 $ - Indirect Labor $ 2,309,000 $ - Power $ 302,000 $ - Light and Heat $ 106,000 $ - Building Service $ 75,000 $ 75,000 Materials $ 4,851,000 Supplies $ 350,000 $ - Repairs $
A motor car for the great multitude a goal for Henry Ford(Schlager 593). In the 1920s, automobiles are rapidly changing the American lifestyle forever because of their affordability and also the development of new assembly technology to lower the cost. Technological innovations of assembly begin to expand and advance for the better throughout the 1920s, which impacts Americans and the people of the world today. Henry Ford, a bold figure during the 1920s, owner of Ford automobiles. His ideas and innovation like the assembly line forever changes the automobile and the way goods are produce. Although there are many technological advancement during the 1920s, the assembly line designed by
2. What is the risk to Coca-Cola’s reputation in using too much water and producing waste water?
In 1999, the water well industry was shocked by a simple demonstration (Ross 25). This demonstration launched the Nebraskan Grout Study, which found that the current grouting techniques were ineffective, causing detrimental damage to our freshwater supply (Ross). However, despite the study, there are still some who believe that these techniques are the correct processes to construct wells. Because of this, it is essential that today’s society rallies around a water ethic that will protect the water supply; in addition to a water ethic, humanity must be educated on the issue and current wells should be fixed. Without fixing improper well construction, society will face the contamination of a majority of our fresh water supply making action essential to our survival.