Premium Essay

Case Lake

In:

Submitted By thesanee
Words 375
Pages 2
CASE – Lake Champlain Sporting Goods Company, a wholesale supply company, engages independent sales agents to market the company’s products throughout New York and Ontario. These agents currently receive a commission of 20% of sales, but they are demanding an increase to 25% of sales made during the year ending December 31, 20X4 budget before learning of the agent’s demand for an increase in commissions.

The budgeted 20x4 income statement is shown below. Assume that cost of goods sold is 100% variable cost.

LAKE CHAMPLAIN SPORTING COMPANY
Budgeted Income Statement
For the Year Ended December 31, 20x4

Sales $15,000,000
Cost of good sold 9,000,000

Gross margin $6,000,000
Selling and Administrative Expenses: Commissions $3,000,000 All other expenses (fixed) 150,000 3,150,000

Income before taxes $2,850,000

Income Tax (30%) 855,000

Net Income $1,955,000

The company’s management is considering the possibility of employing full-time sales personnel. Three individuals would be required, at an estimated salary of $45,000 each, plus commissions of 5% of sales. In addition, two sales managers would be employed at fixed annual salaries of $120,000 each. All other fixed costs, as well as the variable cost percentages, would remain the same as the estimates in the 20x4 budgeted income statement.
REQUIRED:
1. Compute Lake Champlain Sporting Goods’ estimated break-even point in sales dollars for the year ending December 31, 20x4, based on the budgeted income statement prepared by the controller. 2. Compute the estimated break-even point in sales dollars for the year ending December 31, 20x4, if the company employs its own sales personnel. 3. Compute the estimated volume in sales dollars that would be required for the year ending December 31,

Similar Documents

Free Essay

Great Lakes Case Study

...Great Lakes: Great Decisions Strategic Management October 13, 2011 Great Lakes Chemical Corporation is a chemical producing corporation located in the United States that produces many different chemical compounds and solutions, including the ever controversial lead additive used in gasoline in some developing nations. The company, which was originally founded as an oil company, eventually acquired several other corporations and extended their oil business into one that handles chemicals such as bromine and eventually took over the company Octel which produced a lead additive. While the use of leaded gasoline became illegal in the US and all developed countries, it was still in heavy use in developing countries. These countries had yet converted to non-lead use, impart by the total control of these businesses by the government who cared solely on their profits. By a technological standpoint, Great Lakes uses minimal technological advances in its production of the lead additive, along with their other chemicals. With the advancement and use of non-leaded gasoline, all other chemical companies stopped producing the lead additive, mostly to comply with new regulations enforced against the environmentally unsafe additive. The company has been faced with dramatic push backs from environmentalists who urge the company to stop the production of this. The main issue with following through with this is that their economic situation has been extremely successful. The company...

Words: 1422 - Pages: 6

Free Essay

Greta Lakes Case Study

...Assignment 1: Great Lakes: Great Decisions Kimberly Ortiz Professor McGrath BUS499: Business Administration Capstone April 14th, 2012 Assignment 1: Great Lakes: Great Decisions Perform an analysis of the Social/Demographic, Technological, Economic, Environmental/Geographic, and Political/Legal/Governmental segments to understand the general environment facing Great Lakes. Describe how Great Lakes will be affected by each of these external factors. Social /Demographic Segments: Entering into different areas of the world will affect Great Lake’s Social and Demographic strategies, it is more than extremely important that they make the right decisions based on what is needed in the area and by the inhabitants. Different people from different countries and cultures use products inversely; the misuse of a product could have a major impact on the health and welfare of a society. There needs to be an understanding of how their product will be used. Demographics show that the underdeveloped countries who are mostly using the TEL. Great Lakes will be affected by the limitations they have in helping the people in these regions obtain the product that they specifically seem to produce for them (Hitt, Ireland, & Hoskisson. 2011). Technological Segments: The only technological aspect that is an issue for Great lakes is the ability to reach out to underdeveloped countries successfully and spread their product to those that would seem to be in the most need for it. With developed...

Words: 1743 - Pages: 7

Premium Essay

Great Lakes, Great Decisions (Case Study)

...evaluate the ethical dilemma surrounding the product offering of Great Lakes Chemical Corporation. The company produces tetraethyl lead (TEL), which is an additive for gasoline. Surmounting studies from the past few decades have proven the extensive harmful effects leaded gasoline has on the environment, which has caused considerable vocal opposition from environmental organizations against the company. The dilemma arises in the fact that TEL is a huge financial success for Great Lakes; the company controls 90% of the market and the product accounts for 59% of their annual profit. Great Lakes should cease all operations involving the sale of TEL and focus on being a responsible corporate citizen. They will need to reinvest their resources on penetrating new markets, using their existing products as well as new products made possible by the special bromine production process of their subsidiary company Octel Associates. The distribution of TEL has given Great Lakes a very negative brand image. They have the chance to reverse that image by exiting an ethically unappealing market on their own terms. The company has a successful history of entering foreign markets and adapting to regulations overseas. This plan of action is feasible because Great Lakes is already so financially sound and is established as an international corporation with contacts across the globe. Situational Analysis Great Lakes Chemical Corporation, originally McClanahan Oil Company, was founded in...

Words: 4668 - Pages: 19

Free Essay

Assignment# 1: Case 11: “Great Lakes: Great Decisions”

...Capstone-BUS 499 Professor Eliopoulos July 11, 2011 Assignment# 1: Case 11: “Great Lakes: Great Decisions” 1. Perform an analysis of the Social/Demographic, Technological, Economic, Environmental/Geographic, and Political/Legal/Governmental segments to understand the general environment facing Great Lakes. Describe how Great Lakes will be affected by each of these external factors. Social/Demographic Segment-Ellie Shannon, the Division Manager for Great Lakes Chemical Corporation had a concern for what option was to offer regarding the continued use of lead based additives in developing countries. Even though it was not illegal to do so, Ms. Shannon considered the potential effects this decision would have on Great Lakes to compete in global markets and if it would impact the company positively or negatively as a corporate citizen. Technological Segment-Great Lakes was a company that always sought to keep up with technology and ways to make its product better. During the 1950s they focused on petroleum production and from there moved into the bromine and chemical business. Great Lakes developed chemical products for applications such as water treatments, specialty household cleaners, flame retardants, polymer stabilizers, fire suppressants, and performance chemicals. Great Lakes took on the production of lead additives and that is where they made the majority of their wealth. Economic Segment-Great Lakes made very wise decisions as far as investing in companies such...

Words: 744 - Pages: 3

Free Essay

Roles of Snakes

...oxygen-depleting plant life and resulting in harm to other organisms (Encarta dictionary 2007). This is one of the ecological problems that are affecting PAU thought others don’t see it as a problem. Thus, the essay will discuss further on how it is started and evidences of its existence, how to minimize or prevent it from eventuating, and how it affects the environment in which we live in and give a real case study of its effects. Eutrophication began to develop on the lakes of PAU when the campus department stopped cleaning the lakes in order to let the birds to lay their eggs on the flowers growing in the lakes. This is evident in lake two. This has led to eutrophication due to the overcrowding of plant life in the lakes. Some proof that the lakes are becoming entropic are that they smell, overgrowth of plants means the level of oxygen is depleted and less penetration of sunlight, algae are starting to cover the surface of the lakes. Therefore, this shows that lakes here at PAU are starting to become eutropic. Prevention is better than cure therefore it is better to prevent the lakes from becoming eutropic than to cure it after it has become eutropic. As stated in the article, ‘How to cure Eutrophication’ (2012, May 17) that a pond that has become eutropic is hard to rehabilitate. This is because not only will you have to fight the nutrients that are currently running off into the pond, but you also have to undo all of the problems that have compounded over the past number of weeks...

Words: 627 - Pages: 3

Free Essay

Mito

...ECON 4355/5355 - Case Study Requirements & Questions – Sandy Pond As indicated in the case study general guidelines, provide a brief introduction to your report. Your introduction should highlight the main points and lead the reader to the specific questions below that you are going to address. This is an analysis type of report, so you need to use a paragraph format. You may use any style format for your references (MLA, APA, Turabian, or Chicago) but it is important to be consistent. Your papers will be read by other faculty in the College as part of our AACSB assessment program. List each question and provide your narrative below it. Keep in mind that some of the questions may require outside material and references. Make sure you provide correct citations to that material. Use 12 point font, normal 1.15 inch margins, and 1.5 line spacing for your paper. Length of paper will vary with the detail of your answers but it should be at least 8-10 pages. Instead of being designed as a management decision-making exercise, this case places you in the position of environmentalists as you decide what course of action to initiate evaluating both ethical and economic issues. Harvard Business Review Summary: In July 2009, Vale NL began building a $2.17 billion nickel refinery in Long Harbour, Newfoundland and Labrador. The refinery would bring economic prosperity by creating 1,600 to 2,000 jobs during construction and 400 to 500 permanent jobs in an area of high unemployment. The project's...

Words: 774 - Pages: 4

Premium Essay

Eutrophication

...Report Jonathan W. Moore, Daniel E. Schindler, Mark D. Scheuerell, Danielle Smith and Jonathan Frodge Lake Eutrophication at the Urban Fringe, Seattle Region, USA Nutrient pollution and associated eutrophication of freshwaters threaten the ecological integrity and the services provided to humans by lakes. We examined how human residential development influenced the level of lake eutrophication in the Seattle, WA, USA, region. We surveyed 30 lakes and measured 3 indicators of eutrophication: concentrations of chlorophyll-a and phosphorus, and the proportion of algae that are inedible to zooplankton. We classified lakes based on the waste-treatment method for shoreline homes: septic, sewer, and undeveloped lakes. Septic lakes occurred along the urban-rural fringe while sewer lakes occurred near urban centers. Septic lakes were more eutrophic than sewer lakes and undeveloped lakes, as indicated by higher levels of phosphorus and chlorophyll-a. These results suggest that septic systems contribute to the high levels of eutrophication in lakes at the urbanrural fringe. Lakes at the urban-rural fringe represent an opportunity for proactive management of urban expansion to minimize lake eutrophication. A lake without shoreline development. Undeveloped lakes were less eutrophic than lakes with shoreline houses. Photo: D. Schindler. INTRODUCTION Residential development in the United States has increased substantially over the last 50 years. Much of...

Words: 6539 - Pages: 27

Free Essay

Taming the Disaster - Attabad Landslide

...Published: 08/09/2013 Abstract Hindukash - Karakoram - Himalayan (HKH) is a hazard prone region where triggering of landslides due to seismic, geological, hydrological or anthropogenic reasons is a common phenomenon. On 4th January 2010, a massive landslide at Attabad swept the low lying Surat village and blocked Hunza River thereby creating a dam resulting into a huge lake upstream. As a result of preliminary planning, emergency response was launched by Frontier Works Organization (FWO), a civil engineering component of Pakistan Army Engineers on instruction of the Federal Government and a 24 meters deep spillway cut was made through which the water started flowing on 29th May 2010 resulting into lowering of water in the lake. A detailed planning ensued and different proposals including those of Chinese, Americans and FWO were considered and finally based on cost-benefit analysis, the indigenous effort for execution was approved. FWO planned the operation in five stages whereby 675 meters long spillway was to be deepened by 30 meters having a width of approximately 60 meters resulting into lowering of water in the lake by over 50 percent. The working and weather conditions were extreme. The work was only possible in winter season when the water inflow reduced to minimum. FWO with dynamic leadership, meticulous planning, determined execution and methodical working achieved the assigned target within three working seasons and reduced the spillway bed level from 2398 meters to 2368 meters...

Words: 7605 - Pages: 31

Free Essay

Resource Collection

...Resource collection #5 Alliterations Develop Awareness of Beginning Sounds Children can follow children on the recording and have fun acting out some of the movements: pig rolls & plays; lizard leaps; snails slide; worm wiggles; caterpillar crawls; diving dolphin. Ask the children - what’s the same in most of the sentences of words (i.e. pink pig plays, pen - they all start with the letter p). Jack Hartmann Chorus Clap your hands to the beat Sing these tongue twisters with me Pink pig plays in his pen Pink pig plays in his pen Plays, plays in his pen Plays, plays in his pen Little lizard leaps by the lake Little lizard leaps by the lake Leaps, leaps by the lake Leaps, leaps by the lake Slithery snails slide so slow Slithery snails slide so slow Slide, slide, slide so slow Slide, slide, slide so slow Repeat chorus Wiggly worm wiggles in the water Wiggly worm wiggles in the water Wiggles, wiggles, wiggles in the water Wiggles, wiggles, wiggles in the water Creeping caterpillar crawls by the creek Creeping caterpillar crawls by the creek Crawls, crawls by the creek Crawls, crawls by the creek Diving dolphin dives so deep Diving dolphin dives so deep Dives, dives, dives so deep Dives, dives, dives so deep Repeat Chorus Starfish Song for Teaching About Compound Words and Syllables Fran Avni Each object named can be followed by claps, snaps, or any repeated rhythmic pattern. The door can be knocked on, the bell can be rung...

Words: 754 - Pages: 4

Premium Essay

Lake Trout

...The stocking of lakes began in the late 1800s in the wilderness lakes of the western United States. Lake Trout was the most common fish stocked because of its popularity among sport fisherman. Until the 1960s, the environment and its ecosystems were not considered in the process of stocking a body of water. In the 60s, it became widely understood how fragile an ecosystem can be. Now, controversy surrounds the different methods of stocking fish as well as its jurisdiction under the law. In this investigation, fish stocking will be examined in its history, basics, ecological effects, and controversial areas. At the start of the 20th century sport fishing was gaining popularity. With the rise in fishing came the need for more fishing spots. To fulfill this demand, the process of stocking fish was used and became very prevalent. Will Colby,...

Words: 901 - Pages: 4

Free Essay

Canton Lake

...Reid Haigler Professor Horton English 1213 2/4/13 The release of water from Canton Lake to replenish Oklahoma City’s drinking water has become a huge controversy in northwest Oklahoma. Oklahoma City officials claim that the city has waited as long as possible before pulling water from the lake; however, residents of Canton, Oklahoma don’t buy into this excuse. Is it really necessary to take 30,000 acre-feet of water from a lake that is already at a record low without much chance of recuperation? Besides the argument of whether or not Oklahoma City’s decision is warranted, the economy of the city of Canton as well as the lake’s land and wildlife habitat could experience detrimental losses. Oklahoma’s collective lakes have experienced an intense drought in the past two years. It is due to this drought that this issue has even come to light. Some claim Canton Lake was created as a reserve for Oklahoma City’s drinking water while others claim that it was created for flood control. As The Enid News and Eagle clarifies, “Kathy Carlson, U.S. Army Corps of Engineers lake manager, told the group the lake was built for flood control, water supply and irrigation. Later, secondary purposes were included that added wildlife habitat and recreation” (Barron). Regardless of why the lake was created, local residents believe the water release is unnecessary. Canton business owners, residents, and even surrounding towns argue that Oklahoma City residents and businesses have been...

Words: 876 - Pages: 4

Free Essay

A Glance at Cheney Lake Reservoir Ecosystem

...A glance at Cheney Lake Reservoir Ecosystem James Killion SCI/256 August 12, 2013 Mary Corrigan, Ph.D. As any lake Cheney Lake Reservoirs ecosystems begins with the sun, for without the sun there is no life. This is true because the sun is what provides the energy that is needed for the start of a food chain. At Cheney Lake Reservoir there is no difference than any other lake. Phytoplankton is the start food chain; it is mostly made of algae. Phytoplankton needs a sufficient amount of sunlight and temperature to grow, not only does it need sunlight it also requires phosphorous and nitrogen to flourish. In order to have an ecosystem that is productive and healthy there must a proper amount of phytoplankton at all times. If there is not enough phytoplankton there will not be enough to go around, if there is too much there not be enough light to support life. Phytoplankton is considered to be a producer. Zooplanktons are considered to be the animal in the free floating particles in the water. Their perpose is to eat algae, bacteria, and sometimes other zooplankton. Zooplanktons are considered to be a primary consumer in this food chain. Next to come is known as the secondary consumer....

Words: 863 - Pages: 4

Premium Essay

Panguitch Lake Research Paper

...Panguitch Lake TMDL Panguitch Lake is located in the high mountains of southwestern Utah, at an elevation of 8,200 feet. It is a natural lake, but in 1885 a dam was built to increase the water capacity. When the lake is full, it is about 57 feet deep, covers approximately 1,234 surface acres and holds about 40,100 acre-feet of water. Panguitch Lake has 5 major tributaries, which are all creeks. Panguitch Lake has 5 beneficial use classifications, which include, 3A, 2B, 3C, 3D and 4. The only classification that is impaired is 3A. Class 3A is the protection of cold-water fish and other aquatic life. There are two causes for this impairment. The first cause is the amount of phosphorus in the water. The second cause is the low amount...

Words: 485 - Pages: 2

Free Essay

English Essays

...The Knife That Killed Me The book starts off by Paul explaining how the knife can come close but that the math means that it can never reach him. He is sitting in the geography room listen to the teacher mumble on about fresh water lakes in America, and how his eyes are gazing so far away that you could think he is there. Then he feels something at the back of his hair, and he runs his fingers through his hair and finds that it is chewing gum. We get introduced to Miller, Roth and another person. Paul’s school was divided between two types of "gangs." One gang was run by the school's biggest bully, Roth. Roth found physical pain in fighting. Meanwhile, the other "gang" kept to themselves and were friends. Around the school they were known as the "freaks" since they were quiet and didn't start trouble, there leader Shane was one of my favourite characters. He cared about his group and wanted peace. Roth bullies Paul into making him send a package up to their rival school, and when Paul says that he will get hurt Roth says its fine and that he know he’s coming. He delivers the package and finds out that it is a dogs head. The people at that school declare war and demand a fight at 2 tomorrow. Roth accepts the fight and starts to make an attack plan. The 2 schools start fighting and Paul becomes overpower and pulls out his knife on a kid from the other school, he feels scared and turns and plunges the knife into the person behind him. It was Shane. Shane died in hospital. Paul...

Words: 305 - Pages: 2

Free Essay

Ffffffffffff

...flowing from different directions come together to form the main river, which ultimately drains into a large water body such as a lake or a sea or an ocean. The area drained by a single river system is called a drainage basin. A closer observation on a map will indicate that any elevated area, such as a mountain or an upland, separates two drainage basins. Such an upland is known as a water divide (Figure 3.1). Sr ea m B 3 T Sr ea m A W at er Di vi de subcontinent. Accordingly, the Indian rivers are divided into two major groups: • the Himalayan rivers; and • the Peninsular rivers. Apart from originating from the two major physiographic regions of India, the Himalayan and the Peninsular rivers are different from each other in many ways. Most of the Himalayan rivers are perennial. It means that they have water throughout the year. These rivers receive water from rain as well as from melted snow from the lofty mountains. The two major Himalayan rivers, the Indus and the Brahmaputra originate from the north of the mountain ranges. They have cut through the mountains making gorges. The Himalayan rivers have long courses from their source to the sea. They perform intensive erosional activity in their upper courses and carry huge loads of silt and sand. In the middle and the lower courses, these rivers form meanders, oxbow lakes, and many other depositional features in their Figure 3.1 : Water Divide The world’s largest drainage basin is of the Nile...

Words: 3526 - Pages: 15