Winter : An Analysis Of Cost, Revenue, And Profit Essay

The decision to forgo the production of the cheaper product should also be evaluated in a capital investment cash flow analysis. The management of Prairie Winds will need to consider whether the internal and external side effects of their decisions in the capital budgeting analysis for the product lines. If the side effects increase cash flows of existing assets they are considered compliments, and they are considered substitutes if the side effects negatively effect cash flows.

The product management team asks you for an analysis of the stock-out probabilities for various order quantities, an estimate of the profit potential, and to help make an order quantity recommendation. Specialty expects to sell Weather Teddy for $24 based on a cost of $16 per unit. If inventory remains after the holiday season, Specialty will sell all surplus inventory for $5 per unit. After reviewing the sales history of similar products, Specialty’s senior sales forecaster predicted an expected demand of 20,000 units with a .95 probability that demand would be between 10,000 and 30,000 units.

The rise in revenue was rapid starting from the year of operations. The key period of business was from April to September were revenues were equal to 65% of total revenue as the product was seasonal. The basis of forecasting for the year 1981 & 1982 is the expectations of sales by Mr. Turner & Mr. Rose. It is given that total sales were $ 15.80 million in first half of year 1981 and the total sales in 1981 to reach $ 30 million. Profit after tax was expected to be $ 1 million for 1st half and we assumed for the next half, profit will be in proportion to first half & expected to be amounting to $ 0.90 million. For year 1982, the sales expectation by Mr. Rose was around more than $ 71 million &

May June July August September October November December Average Total Rooms Occupancy Occupied Percent 126 150 154 162 163 159 156 162 154 186 149 118 153 51.6% 61.4% 63.1% 66.2% 66.7% 65.3% 64.0% 66.4% 63.2% 76.4% 61.0% 48.3% 62.8% Total ADR $140.27 $139.29 $141.80 $140.20 $143.72 $141.90 $139.11 $141.54 $145.08 $157.36 $148.66 $137.38 $143.03

6.) Macy’s has significant additional expenses in the period leading up to the months of November and December for the anticipation of higher

|B)     On the same set of axes, plot the total , average, and marginal-revenue schedules of part (a) |

In the year 2016 I inputted an amount of $6400.00 from January through August. From September through December an amount of $2400.00. For a total of $8800.00

2.) For each expense that is variable with respect to revenue hours, calculate the cost per revenue hour.

What formula or function does he put in Column F that will show the total expenses for each day?

Greaves provided five years and two months of annual sales data. Using Stat Tools, the following analysis were run: Moving Average, Exponential Smoothing Simple, Exponential Smoothing Holt’s, and Exponential Smoothing Winter’s. Following a comparison on the average on all models, the Exponential Smoothing Winter’s was found to be the most suitable model for the case. A graph

The profitability figures as derived from the data given in the case are as follows:

(Other revenue---$12,685 from March; Qi---intercompany hours; Qc---commercial hours). If the intercompany hours reach the capacity of 205 hours per month, then the revenue will be 800Qc+94,685.

During performing the sales forecast for Victoria's Secret, I learned that for most part that Victoria's Secret has an incline in their profits. They have however hit a few bumps here and there. The causes of this could be more cost for Victoria's Secret purchasing materials and production of their products. Another reason for this could also be a slower rate in sales than usual. Like I said, for the most Victoria Secret has seen an incline in their profits and sales throughout the years. Performing the percentage of sales forecast for Victoria's Secret, I established a forecasted sales of 5 percent which means that they would have to have a sales of $2,808 compared to their last years $2,675. This is a very feasible number for Victoria Secret to achieve, considering that majority of their money in assets outweighs their liabilities.

For tax purposes, it is important to forecast cash flow and income. Sally, in Y1 you posted taxable income of $250k, in Y2 $10k, and in Y3 $150K. Were these numbers based on actual gross sales, or did your deductions and depreciation change drastically between Y1 and Y2?

Seasonality, particularly when dealing with surf trips, may cause problems with supply and demand. If the weather shows that certain areas will not be ideal spots at certain times, the demand under those circumstances will be low. Based on the principles of supply and demand and the pricing policy, this means the cost must also lower to entice more customers. Furthermore although the reverse would suggest that then during times when the weather, time and location are going to produce results conducive to certain sports that the demand will be high and therefore the cost can be raised also. However, due to the weather being somewhat unpredictable, even the times that should be peak seasons will have days where people do