Strategic Factors That Multi Metal Sdn Bhd

If you compare bakery sales in July to bakery sales in September, it shows a 66% increase in sales in just two months. Peyton Approved uses its equity to finance the business than taking out loans. It has a .36% Debt to Equity ratio. The best ratio for the business is the profit margin. In three months the profit margin for Peyton Approved is 53.4%. The company just added a product line of hypoallergenic shampoos. It has been selling these products for one month and the company only turned the product over once during that month. At this time it does not look like adding these products to sales is

A person can see from the analysis that both companies had a fewer profits in 2005 over 2004. The increase of operation expenses was the cause of low net profits. Both companies need to rethink their operating cost to decrease their expenses which in return can help increase their profit margin.

In its first year of operation, the company produced 10,000 units but was able to sell only 9,000 units. In its second year, the company needed to get rid of excess inventory (the extra 1,000 units produced but not sold in 2011), so it cut back production to 8,000 units. Required a. Calculate profit for both years using full costing. b. Note that profit has declined in 2012. Is company performance actually worse in 2012 compared to 2011?

Companies can choose many ways to set prices, skimming price strategy where a company sets a higher price than normal and a penetrating price where low initial price is set. “Pricing

Today in America we are afforded too many kitchen appliance choices which present a conundrum. The electric range is affordable to all people; however the gas range cooks exceptionally well. The decision to choose a gas or electric cooking range has become a complex decision with many factors to be taken into account.

The Nelson’s wine store was operating a loss. They began their business with a $7,000 personal savings investment and a $15,000 which they had not been able to begin repayment during their nine months of operations. After the performance of a financial analysis, it was concluded that the Nelsons were losing on average $802 per month with estimated average monthly sales of $1,888 and estimated average monthly expenses of $1,580. At these levels, not only could the Nelsons not make a profit, they could not breakeven. In order to breakeven, the Nelsons would need to generate sales of $5,642 offering no salary to Bruce or $9,214 offering a salary to Bruce.

However, there are several factors for the company to choose its pricing strategy. In this case, it may be better if the company choose to sell its product at $21.50 instead of $15.50. This is due to the fact that price-cutting appears to be not a good strategy in this industry. If every player in the same industry starts to lower the price of their products, every company will end up having the low price, which in turns lead to a low profit margin. Moreover, referring to the calculation in a below table, it also implies that if the price is lower than $12, sales will not be able to cover the variable cost incurred, thus it will bring about a loss in net profit.

I have browsed the market of the toasters and compared three models. Moreover, I have determined the toasters’ evaluation criteria, based on the restaurant’s needs and requirements. According to the defined criteria of evaluation, I have assessed the chosen three models of toasters and checked their suitability for the restaurant’s needs.

In Australia, cooking food at home is seen as a laborious task and it is not only applicable for women but men too. With technological enhancement paving its way into everyone’s life, it was about time that advancement should be made in gas oven installation.

There were not any units sold in the worst-case scenario. From this reason, the revenue and variable costs were zero. Therefore, there was not only no profit, but also there was $29,250 loss which is the total fixed costs. However, in the best case with $8,775 units sold which means they get revenue of $350,561. Moreover, the variable costs were $292,811 but the fix costs remained was nothing change. As the result, there was a significant profit of $58,500.

3. Explain the difference in profitability of the five orders calculated by the ABC system and the company’s existing cost system.

Lost profit because of reduced cost (11% price drop for 40% of sales) is shown

First, I am going to compare different models of the toasters, identify their properties and specialties and contrast the prices. I am going to look at three different models to choose the most optimal model for the restaurant. Then, I am going to establish the criteria for assessing the toasters, in accordance with the restaurant’s needs and possibilities.

The strategy for setting a product’s price often has to be changed when the product is part of a product mix. In this case, the firm looks for a set of prices that maximizes its profits on the total product mix. Pricing is difficult because the various products have related demand and costs and face different degrees of competition.

Despite the potential benefits and the efforts of national, regional and global initiatives, programs and projects the rate of improved cookstoves acceptance has fallen behind the expectation due to different factors (Puzzolo, 2013; Berkeley Air Monitoring Group, 2012; Lewis & Pattanayak, 2012; GACC, 2010; WHO, 2009; Barnes et al., 1994). To identify reasons affecting the acceptance of improved cookstoves studies have been conducted and the main findings are summarized.