Capsim Final

The initial strategy was to maintain a competitive presence in each segment by keeping our prices aligned with the average for each target market, while maintaining costs low. Specifically, it was our goal to become the leader in Traditional and low-end segments of the sensor business by allocating significant resources to R&D, marketing and promotions for these products. Our differentiator would be the result of a high investment in R&D to ensure our products were the best available.

By following the patterns of these established low cost leaders, we were able to model our company by implementing the following key steps to ensure low costs while gaining market share:

As the Chief Executive Officer of Digby Company, I am proud to present a report on the status of our company to the Board of Directors. Here at the Digby Company, our strategy strives to provide our customers with the best products to increase our overall revenue growth and stock to satisfy our shareholders. Throughout eight years, Digby has used an aggressive strategy of investing heavily into R&D, production, and

6. What information should be given to B.J. about the expected duration of hormone therapy and monitoring of treatment efficacy?

The income statement on page 50 shows the variable costs and fixed costs more clearly. It has broken down the

b. What would Mrs. Beach have to deposit if she were to use common stock and earned an average rate of return of 11%.

Question 3: Identify all costs associated with this venture. Categorize these costs as fixed or variable.

Since an ROE of 21.48% equals the product of 4.41% and 4.87 (ROA and Equity Multiplier), it indicates that the firm is able to achieve such high ROE only through a high financial leverage.

2.) For each expense that is variable with respect to revenue hours, calculate the cost per revenue hour.

3. For each of the individual overhead accounts at Bridgeton, do you believe the given cost is variable, fixed, or something else? Why? (Use information or evidence from the case to support your evaluation, if possible. For most of these costs, there is no single right answer from the case information, so the goal is to come up with a reasonable estimate.)

| The ROE decreased in the last year but still in the good margin of profitability.

A variable cost is a corporate expense that varies with production output. Variable costs are those costs that vary depending on a company's production volume; they rise as production increases and fall as production decreases (Variable Cost, n.d.); in the case study for all cost per event such

All the costs by a company can be broken into two categories, fixed costs and variable costs. Costs that are independent of output are called fixed costs. Fixed costs remain constant throughout the relevant range and are usually considered sunk for the relevant range. Buildings and machinery are included inputs that cannot be adjusted in the short term. They are only fixed in relation to the quantity of production for a certain time period. The cost of all inputs is variable, in the long run.

The return on equity, ROE, is as high as 20.69% (above 15%). It illustrate that the RL Corporation uses the investors’ money pretty effectively. As of return of assets, equals to 13.10%, which reveals how much profit a company earns for every dollar of its assets. Both ROE and ROA for RL Corporation seems really good and they provide a picture that managers are doing a good job of generating return from shareholders’ investments.

3 variable costs indentified, they are power, operations, material. They are proportional to the revenue intake.