| | Case #4 - Conch Republic Electronics | | | | | | | | | | | | | | | | Input Area: | | | | | | | | | | | | | | | | | | | | | | | | | | | Equipment | $15,000,000 | | | | | | | | Salvage value | $3,000,000 | | | | | | | | R&D | $750,000 | sunk cost | | | | | | | Marketing study | $200,000 | sunk cost | | | | | | | | | | | | | | | | | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | | | | Sales(units) | 70,000 | 80,000 | 100,000 | 85,000 | 75,000 | | | | Depreciation rate | 14.29% | 24.49% | 17.49% | 12.49% | 8.93% | | | | Sales of old PDA | 80,000 | 60,000 | | | | | | …show more content…
| 1,300,000 | 900,000 | | | | | | | Net sales | $13,300,000 | $16,300,000 | $26,000,000 | $22,100,000 | $19,500,000 | | | | | | | | | | | | | VC | | | | | | | | | New | $6,020,000 | $6,880,000 | $8,600,000 | $7,310,000 | $6,450,000 | | | | Lost sales | 1,020,000 | 1,020,000 | | | | | | | | $5,000,000 | $5,860,000 | $8,600,000 | $7,310,000 | $6,450,000 | | | | | | | | | | | | | | | | | | | | | | Sales | $13,300,000 | $16,300,000 | $26,000,000 | $22,100,000 |
ASC 320-10-35-33F: “Changes in the quality of the credit enhancement should be considered when estimating whether a credit loss exists and the period over which the debt security is expected to recover.”
the wafers - 10 Million to upgrade current equipment · Reduced supply of 100mm wafers
After some time, Max discloses that he has been involved in multiple sexual relationships and says he “can get in any woman’s pants.” He also brags that he is smarter than anyone in the group, regardless of the fact that one person has a PhD in
In our second assumption, instead of using the cost of goods per cases in 1986, we try to use the percentage it counts in the total expenses which is 50.4% and to find the sales needed to break-even. The detail of the calculation is shown in the answer for questions d. The result is that 95,635, a little bit higher than the estimated sales of 90,000.
For years 1983-1985, additional corporate assessment expense was given. This would lower Polymold’s earnings on their income statement. Another piece of data that was given is research and development expense. Without the CAD/CAM investment, research and development expense is $130,000. This is double to $260,000 without the CAD/CAM investment. This would lower earnings. We are also given the savings that the investment would yield. Without the CAD/CAM investment, there would still be savings – but not as much as with the CAD/CAM investment, which is due to the depreciation of the equipment and tax credits.
Ques 1: Draw a detailed process flow map of the current process at receiving Plant#1. What is the capacity of each operation in the process?
Webmasters.com has developed a powerful new server that would be used for corporations’ Internet activities. It would cost $10 million at Year 0 to buy the equipment necessary to manufacture the server. The project would require net working capital at the beginning of each year in an amount equal to 10% of the year's projected sales; for example, NWC0 = 10%(Sales1). The servers would sell for $24,000 per unit, and Webmasters believes that variable costs would amount to $17,500 per unit. After Year 1, the sales price and variable costs will increase at the inflation rate of 3%. The company’s
For the problem on distribution partner, Augat has the option to stick with White Radio, or to seek new partnerships in distribution like Anixter Canada, or Deskin Sales. Though this would help Augat enhance the coverage in terms of suppliers (or end-users) and a potential increase in market presence. However, on the other hand, Augat would lose the exclusive relationship it was with White Radio, knowing White Radio’s Steve Quinn’ knowledge about Cable TV MSO’s approval process. In addition, the other distribution companies also carry competitor’s products and there is no guarantee that they would push
1. Why is Auhll (CEO of Circon) resisting to the takeover? How do incentives of Auhll conflict with those of other (minority) shareholders?
Recommendation 1: To expand more internationally by building plants in lower property taxed areas with low tariffs to ship products out.
Throughout time many have had a fascination with serial killers and with help from the media they have become celebrities within our culture. There are many books, movies, television shows, and news coverage to introduce viewers to their lives. With all the interest behind serial killers, many wonder how they come to be this violent. The question is often asked, are serial killers born or made?
Suppose you are the network manager for Central University, a medium-size university with 13,000 students. The university has 10 separate colleges (e.g., business, arts, journalism), 3 of which are relatively large (300 faculty and staff members, 2,000 students, and 3 buildings) and 7 of which are relatively small (200 faculty and staff, 1,000 students, and 1 building). In addition, there are another 2,000 staff members who work in various administration departments (e.g., library, maintenance, and finance) spread over another 10 buildings. There are 4 residence halls that house a total of 2,000 students. Suppose the university has the 128.100.xxx.xxx address
In vertical analysis, it is easier to see elements as a percentage of Revenue. Between 2011-12, the portion that cost of sales takes in revenue has increased however, there is a bigger deterioration in distribution cost. In 2011, 9.21% of revenue remains as profit but in 2012 this figure decreases to 8.14%. Despite reduction in costs is one of the strategies of Ted Baker(part 1.4), analysis illustrates that costs increase each year.
Northern Alberta, the oil sands development area surrounding Fort McMurray, is the fastest growing economic area in Canada for several years. Obviously Bolster’s total market share in this area was the highest with one third of the total market share it held national wide. Vickers based in Edmonton, Alberta covered 50% of the local market share and 75% of servicing in that area in spite having a national distributor, National Electronics (National). Also local firms preferred to do business with Vickers than National which has their nearest warehouse in Calgary, Sothern Alberta around 750 Km from Fort McMurray. (Exhibit 1)
After analyzing the results from the previous quarter, it was determined that the prices set for each segment were not sufficient. Product sales priority were also not properly adjusted. With the R&D investments, sales priorities needed to be changed for the main focus to become the most profitable market segments. Prices were not competitive which in turned decreased revenue, market share, and profitability. To become more competitive we altered the prices in each market segment. The Workhorse product was the first to change, the price was lowered to $2500 in an attempt to increase sales; at this price Team 4 was still making a profit on this product, as well as making the price much more competitive. The Workhorse sales priority was also lowered to 3rd in Americas and 4th in APAC and EMEA. This product was not selling as well as we had hoped, and was no longer as profitable as it once was which led to this decision. Next, the Innovator product’s price was adjusted; this involved a price increase to $4100. This price was adjusted to include the new