Case Study Assetguard Case Essay

• Net profit margin has been negative and no major patterns over the 9 year period on net profit since the trend of the industry is based mostly on economic factors, and whether or not they secure contracts. Due to high percentage of COGS they are only left with a net profit of $980 or

Since our company’s main focus is premium products we will aim for high contribution margins, around 50%, on average, over all five products. After establishing our company brand and products within the market we will look to increase contribution margin to be between 55%-60% over all five products.

We put $500,000 towards television advertising, and $700,000 towards magazine advertising. We assumed that newspaper advertising was unnecessary and less effective opposed to television and magazine advertising. Next, we decreased public relations expenditure from $500,000 to $320,000. Like advertising, we put more money towards magazines and television than newspaper. In television, we spent $125,000 and $195,000 in magazines. By following the scenario information, our company believed it was best to spend our money according to the suggestions and preferences that were stated in order to meet market demand.

The change in the contribution margin for all the products is responsible for the change in profitability.

8.20 equals $ 86,700. The contribution margin per unit at a retail price of Cr. 6.85 equal 1.95. The required volume will be the result of dividing the profit impact on the contribution margin per unit.

Besides the product and geographical focus, Progressive also emphasizes on strengthening the relationship with the over 14,000 agents to distribute its products and services. By discipline pricing, Progressive demands adequate rates to achieve underwriting profitability and is willing to forego volume if necessary to achieve profit objectives. It is committed to set individual rates more accurately than the competitors. In addition, they will promptly respond to claims reported by local claim adjusters, which deliver effective control of the claim resolution process.

What risk-free rate and the risk premium did you use to calculate the cost of equity?

Sensitive items are anything that is considered classified or a mission essential item. These items can include protective gear, maps, or a piece of paper designating patrol routes. The importance of securing sensitive items comes down to maintaining accountability for operation security, mission success and a soldiers over all readiness. The habits of exercising security and accountability of a soldiers items allow the soldier and their team to operate to the highest standards or have items be accessed by an opposing adversary creating loss of overall mission success.

For example, Able could have sold an additional 0.2% of the market segment units of 14,937 and Acre an additional 1.9% of the market of 21,715 units. Doing that math for each product and applying the sales price and contribution margin shows a potential increase in sales of $74,484 (a 32% increase) and a margin increase of $26,286 (126% increase). This would have increase our ROS from 9.0% to 15.5%, which would have been tops in the industry.

Total Sales Dollars (for covering each incremental dollar of advertising) = Absolute increase in dollar sales / Advertising expense = $500,000 / $150,000 = $3.33

Spends 3% of net sales on advertising and sales promotion efforts. 55% of advertising and sales promotion dollars are allocated to cooperative advertising programs with retail accounts.

Fighting Chance created the Budgeting and Protection of Assets Policy to reflect our agency commitment to to its mission and local, state and federal laws. Fighting Chance’s aims at all times to prevent disrepair, excessive risk, untraceable transactions, or conflicts of interest in the management of the organization’s resources. It is the responsibility of the Executive Director to research and develop Fighting Chance's overall annual operating budget. The annual budget should be soundly prepared reflecting a mix of ongoing operational and capital requirements and Fighting Chance’s]'s critical strategic issues as identified in the strategic plan. The budget should reflect both expenditure and revenue projections. The purpose of this policy

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

illustrates a comparison between income statements that show advertising as an expense and as an asset. The most notable difference is that instead of Polymedica turning a profit for fiscal years 2002 and 2003 Polymedica would be reporting a loss. A comparison of cash flow statements was not conducted since there is no actual change in the cash flow just a change on how it would be reported in the cash flow statement. Recommendations: Polymedica should be collecting data from their direct response advertising in order to more accurately use marketing dollars. Analyzing which 1-800 are being called the most in order to insure that the money spent on the the target demographics. This report may also generate a rate of diminishing return on the advertising and going forward the company should look at how to best spend that money by reducing waste and spending less on the under preforming ad spots. Once people are in general familiar with Polymedica there should be a decrease in advertising dollars getting the amount closer to realized amount. The company needs to accurately get a percentage of continued sales from the initial 1-800 number to

To sum up, if Superior reduces the price of product 101, its profit will increase significantly to breakeven.