Metrics Madness Fall 2013 Review

Assume that next year management wants the company to earn a minimum profit of $162,000. How many units be sold to meet this target profit figure? [3 points]

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.

The new owner of a beauty shop is trying to decide whether to hire one, two, or three beauticians. She estimates that profits next year (in thousands of dollars) will vary with demand for her services and has estimated demand in three categories low, medium and high.

Total Sales Dollars (for covering each incremental dollar of advertising) = $200,000 / $150,000 = $1.33

If Marlene Herbert were to discontinue place mats, he would miss $270,000 that will go toward Mendel paper company fixed cost. The company currently has a plant overhead that is estimated at $420,000 for the quarter. In addition to the fixed plant overhead, the plant incurs fixed selling and administrative expenses per quarter of $118,000. This draws the company to a total fixed cost of $538,000. If Marlene Herbert were to discontinue the second highest contributor to the fixed cost, he would need to increase the volume of computer paper and lower material cost to help pull the contribution margin of the lowest product up to help support the lost of a whole product line.

1. So here’s what we know about the problem. We know that every flower costs Angelica’s Service Club $0.50 to purchase. We know that the price of each flower was set at that purchase price (0.50) plus 40%. And finally, we know that they want to make a profit of $500. Since the price of each flower is an additional 40%, that would mean that you would have to multiply 0.4 and 0.5, since percent is a multiplication expression. When you multiply those two numbers, you would get $0.20. And since the problem stated that every flower was set at the purchase price (0.50) plus an additional percent, it means that you have to add 0.50 and 0.20. When you add those numbers, you get $0.70. $0.70 is the sale price. Now that we have our numbers, we can make

This paper speaks about how important metrics are to any organization that wants to be successful and profitable. By implementing metrics, an organization can track issues that arise and can use the data within the metrics to draft a solution before they cause major problems within the company.

One of the most fundamental questions concerning Big Data is the question of how big the data should be in order to be treated as Big Data (Fingar, 2011). Probably the best answer is that it depends. The basic answer is whenever the system needs to span horizontally in order to handle the data, that probably there is a need to shift towards Big Data solutions (Fingar, 2011). Also, the size of the dataset is itself a significant part of the problem. Typically in modern discussions experts are operating on terabytes and zettabytes.

2) Is the income from making T-shirts more or less substantial than his current job?

If the "by-product" units (400s) are considered a joint product, the average cost is $.40 per unit ($200,000 ÷ 500,000 units).

Competitive businesses must strive for continuous improvement in a highly competitive global market. Methods to infuse quality practices for the application of operations management principles form the basis for collecting and analyzing the data essential for strategic business decisions. One challenge for companies today is the wealth of information and computers to process it. There are numerous software applications to assist in forecasting, capacity planning, production scheduling, enterprise resource monitoring and other decision areas. Businesses must determine the proper application to work with their company model and carefully monitor implementation of a system that will have a broad impact on how

3. solve for the company’s break even point in unit sales using the contribution margin method.

Assume that each unit demanded generates $70 in revenue and that each unit ordered costs $50. How much will the company gain or lose in a month if it places an order based on your answer to part (a) and the actual demand for the item is 300 units?

The Downtown Store should not be closed. The Downtown Store should be closed. 3. Assume that if the Downtown Store were closed, sales in the Uptown Store would increase by $400,000 per quarter due to loyal customers shifting their buying to the Uptown Store. The Uptown Store has ample capacity to handle the increased sales, and its gross margin is 47% of sales. a. Calculate the Net advantage of closing the Downtown Store. (Negative amount should be indicated with a minus sign. Do not round intermediate calculations. Round your intermediate and final answers to the nearest dollar amount. Omit the "$" sign in your response.) Net advantage of closing the Downtown Store $ 169,050

Sales………………………….. $3.33 Variable Costs (70%)……….. $2.33 Contribution Margin (30%)… $1.00 Incremental Fixed Cost........ $1.00 Profit………………………….. $0.00