Thomas Money Service Business Proposal

The company started off producing 20,000 units of mountain bikes. We did not change the production quantity. Last year our forecast sales were 24,000 when we only sold 19,866; therefore we thought it would be best to leave production at 20,000 bikes. Having excess inventory, we concluded that 20,000 units should be enough considering our quality has not changed and our advertising will not increase the sales dramatically. Although we had the choice to produce as much as 30,000 units, we felt as though we did not have sufficient money to increase production. We were interested in allocating the money towards marketing as opposed to production. We realized that without awareness, no matter how many units we make, sales would be inefficient.

Using the assumptions given in the case, all elements of income statement and balance sheet can be projected for next three years 2010, 2011 and 2012. Sales cycle of the products of the company is such that sales of a particular product increases initially for few years and then starts to decline as the new technology

This proves that the marketing strategy increased mid-week sales from 20% to 30%. This sales mix caused variances in the actual operating income and the budgeted operating income. The flexible budget, flexible-budget variances and sales volume variances provide further analysis into the profitability of the operations.

If the company decided to sell the new product at price of D.Cr. 8.20, that means the full fixed expense of 1.20 is covered and the company will make high profit. However, the selling price of D.Cr. 8.20 is very high and under this price the company will sell the new product at a lower volume than what the company planned sale volume in the budget and that will affect the company in the market as a strong competitor in the food manufacturing. According to the case, the company sales volume drop to 30 tons when the product was sold at the price of D.Cr. 8.2. Thus, my recommendation are as follows:

In order to maximize the total profit, the monthly production plan should be 1900 unit/month for Model S and 650 unit/month

Futronics Inc. is a $2 billion firm that sells communications services. Founded in 1937, Futronics Inc. has provided consumer products, as well as government systems and services, for well over half a century. Due to a sharp increase in competition, flattened sales, and external economic conditions, Futronics Inc. is implementing a corporate overhead reduction program. The proposal is to replace the company’s central office stores with outside vendors. The investment will cost $1,000,000 and yield incremental cash flows of $450,000 in year one (1), $350,000 in year two (2), $300,000 in year three (3), and $250,000 in year four (4). There is no salvage value of the asset, and the firm has a cost of capital of 8%. Using capital budget methods, Net Profit Value, Internal Rate of Return and Payback method, the capital investment can be appraised. Futronics Inc.

The budget analysis shows that the labor hours of the firm are higher than the budgeted amount. As such, the firm needs to evaluate the cost benefit analysis of making or buying their products. To make this decision, various factors need to be considered. Before making the decision, Peyton needs to evaluate the marginal costs and revenue of making versus buying the products. The firm should take the option which provides the highest marginal profit which is the

Next, the actual money that spent on this project is far exceed the budgeted amount. To date, it spent 12.55 million more than expected. However, this is not the end, there are still two testing remains incomplete which will cost company more to finish them. Regarding to each items, the item that results in the most unfavorable result is the software development that cost the company 12.90 million more to finish development. We should also notice that the items far behind the schedule are all related to the software. This tells us that the company is extremely not good at developing software. This may due to the sudden change from the medium segmentation focus to the high end products. I would initially recommend the company to have a joint venture with the other high end company to implement this project. However, as the project is almost done, the most important thing is how to promo this product that makes it profitable or at

If we analyze the numbers now we see that there are small changes, by the end of the first year, in Q4 we get $15.2m instead of $15.1, a subtle change but still a faster result. The market share is 6.46% in Q3 instead of 6.40%. This way we can get results faster. However, I would not recommend the advertising manager to do this as it gives a poorer end result. By the end of the third year we get a result of $57.1m in profit where we made $57.2m if we weight short term the same as long term. Also the final market share is 7.65% instead of 7.66%, a small change albeit, but still no reason to choose scenario 3 over scenario 2.

I think it is obvious in the previous years that the amount the company spends on advertising has a direct effect on the number of sales. According to the projected number of units that are expected to be sold, the company is expecting an increase from 3,400 in year 8 to 3510 in year 9. This is a considerable increase because of the fact that in year 7, there were 4,000 units sold, and in year 8 we saw this drop to 3,400.

In the case of Mendel Paper Company which produces four basic paper products lines at one of its plants: computer paper, napkins, place mats, and poster board. Although the plant superintendent, Marlene Herbert is pleases with increased sales he is also concerned about the costs. The superintendent is concerned with the high fixed cost of production, the increases in fixed overhead and even variable overhead. He feels that the production of place mat should be discontinued. His reason for the discontinuation is that the special printing is driving up the variable overhead to the point where the company may not find it profitable to continue with the line. After reviewing the future predictions of the

With Nearly 1,300 Banks in the east coast TD Bank has become one of the most major powerhouses of the east coast. To first understand the bank which brands itself as America’s most convenient bank, we first need to look at the four firms that created the business giant we know today. Tracing back to its initial inception, TD bank was first founded by millers and merchants in 1855 and was initial called The Bank of Toronto. As rapid expansion of the company grew it soon expanded to Montreal as early as 1860. But with this rapid expansion they came across a rival which was founded in 1868 as The Dominion Bank. This rivalry will continue onwards for nearly a century, as both company’s expanded their network of branches to every part of Canada.

Break even analysis can be used to decide whether to alter the existing product emphasis or not. For example in this case, if we refer last year’s data, we can see that the product C is not economically feasible to manufacture at $2.40 / unit. Following table gives the analysis for checking whether the company can afford to invest in additional “C” capacity.

Revenue has increased by 5.7% but profit has balloon up to 208.1% since 2010. This may because of major business process re-engineering. The question may arise that the quality of the product might hurt by reducing the operating and non-operating costs. Further steps should be taken to investigate and cure the quality matter to stabilize the revenue.

The company of late wants to find sources of revenue generation. The various sources available include advertisement on its website, collaboration with various travel agencies offering tour packages (individual and institutional) and partnership deals with hotel and motels. The case dwells into the revenue