...recommends two key changes: 1. Increase price to museums by 25%, from $680 to $850 per batch 2. Increase average number of batches per week by 20%, from 5 batches to 6 batches. These increases would generate an annual profit before taxes of $34,750 and it represents an overall gain of $45,100 over your current earnings. Recommendations The two key recommendations are detailed below. Key Recommendation 1 – Increase price to museums by 25%, from $680 to $850 per batch. The museums are currently marking-up the price to their customers by 900%. This is a hefty mark-up. According to the Hallman Company, the average retail mark-up for jewelry should run between 60% and 67% (Retail mark-up). Ralph Gonzalez with StartUp Growth suggests a mark-up of 300%-400% for jewelry (Gonzalez, 2010) . A 25% increase in the price to the museums would allow the museums to charge a reasonable mark-up of more than 600% while improving your bottom line as illustrated in table 1 below. Sensitivity Analysis Actual Sales Price 25% Higher Sales in Dollars $136,000 $170,000 Batches per Year 200.00 200 Variable Unit Cost $116,000 $116,000 Contribution Margin $20,000 $54,000.00 Fixed Cost $30,050 $30,050 Net Income (or Loss) ($10,050) $23,950 Net Income/Sales -7.4% 14.1% Table 1. Sensitivity Analysis depicting 25% higher sales price The demand elasticity is low (indicates few substitutes, allowing for higher prices with minimal impact...
Words: 959 - Pages: 4
...consists of: BUS 401 Week 1 Assignment, Comparative Analysis.doc BUS 401 Week 1 Assignment, Ratio Analysis, Problem (4-10).xlsx BUS 401 Week 1 DQ 1, Goals of the Firm and Real Interest Rates.doc BUS 401 Week 1 DQ 2, Cash Flow and Ratio Analysis, Problem (3-2, 4-5(Mitchem Marble ).doc BUS 401 Week 1 Quiz.pdf BUS 401 Week 1, DQ 1, Corporate Income Tax and Real Interest Rates, Problem 1-2(Page 26), 2-2(Page 58).xlsx BUS 401 Week 1, DQ 2, Cash Flow and Ratio Analysis, Problem 3-2 (Page 85), 4-2(Page 122).doc BUS 401 Week 2 Assignment, Mini Case, Alternative Investments(Page 254).xlsx BUS 401 Week 2 DQ 1, Annuity and Capital Asset Pricing(Problems 5-6, 6-4).doc BUS 401 Week 2 DQ 2, Bond and Common Stock (problem 7-8, 7-10, 8-16).doc BUS 401 Week 2 Quiz Version a.pdf BUS 401 Week 2 Quiz Version b.pdf BUS 401 Week 2 Quiz Version c.pdf BUS 401 Week 2, Assignment, Mini Case.xlsx BUS 401 Week 3 Assignment, Weighted Average Cost(Mini Case Page 368).xlsx BUS 401 Week 3 DQ 1 NPV, PI and IRR, Problem 9-4 (Page 289), 10-4(Page 235).doc BUS 401 Week 3 DQ 2 Calculating Free Cash Flow, Problem 11-4(Spartan Stores).doc BUS 401 Week 3 DQ 2 Cost of Debt, Problem 11-10(Page 365).doc BUS 401 Week 3 Quiz Version a.pdf BUS 401 Week 3 Quiz Version b.pdf BUS 401 Week 3 Quiz Version c.pdf BUS 401 Week 4 Assignment, Break Even Analysis(Mini Case 2).xlsx BUS 401 Week 4 Assignment, Flotation Cost and Issue Size (13-2).xlsx BUS 401 Week 4 Quiz Version a.pdf BUS 401 Week 4 Quiz Version b.pdf ...
Words: 3672 - Pages: 15
...Lovely Professional University, Punjab Course Code COM354 Course Category Course Title TAX LAWS-II Courses with Numerical focus Course Planner 17055::Shikha Bhasin Lectures 4.0 Tutorials Practicals Credits 1.0 0.0 5.0 TextBooks Sr No T-1 Title Indirect Taxes Laws & Practice, Reference Books Sr No R-1 R-2 Other Reading Sr No OR-1 OR-2 OR-3 OR-4 OR-5 OR-6 OR-7 OR-8 Journals articles as Compulsary reading (specific articles, complete reference) Mohan Rajat "Service Tax Planning- Limits of Management Consultancy Services" [http://www.caclubindia.com/articles/service-tax-planning-limitsofmanagement- consultancy-services-4073.asp] , Thakur Pradeep & Dhawan Himanshi, "ED asks for CWG broadcast contract details" Times of India, Nov 11, 2010 [http://timesofindia.indiatimes.com/india/EDasks- for-CWG-broadcast-contract-details/articleshow/6904772.cms] , Bhalla Monish "Unprofessional Service Tax rules for certain professionals" on 04 November 2010 [http://www.caclubindia.com/articles/unprofessional-servicetaxrules-for-certain-professionals-7363.asp] , CA. Mohan Rajat "GST recent developments" [http://www.caclubindia.com/articles/gst-recent-developments-5308.asp] , Singh Kumar Dheeraj "Historical Background of VAT" [http://www.caclubindia.com/articles/historical-background-of-vat-1716.asp] , By Mahony,Megan , Journal of State Taxation. Nov/Dec 2012 Vol 31 Issue , P 15-18 4P- An recent activity related to sales Tax , By Piquado ,Paul , Federal register 10/22/2012, Vol 77 Issue 204 P 64468-64471-...
Words: 3216 - Pages: 13
...the bond could be called with no premium. Furthermore, Cahill estimated that company could sell a new issue of bond at an interest rate of 12.5 percent. The floatation cost on the refunding issue would be approximately 0.5 to 1 percentage point of issue, and there would be the period of approximately three weeks during which both issue would be outstanding, during which the excess funds could be invested in short-term treasury securities yielding to 10 percent. After the $500 million was sold, Chaill anticipated a decline in interest rates so the bonds made immediately callable. The investment bankers handling the issue wanted Seminole to make the bonds non-callable for 5 year period. The bankers insisted on call premium of 10 % if any bonds were called during the first year, with the premium declining by 0.5 % a year the 20 thyear, after which the bonds could be called with no premium. Seminole could sell a new issue of 25 year bonds at an interest rate of 12.5 %. The call of old and sale of new bonds take place in about five to seven weeks. The flotation cost on refunding issue would be approximately 0.5 to 1 percentage and there would be a period of approximately 3 weeks during which both issues...
Words: 3149 - Pages: 13
...that interest rates were at a high and would likely decline in the future , but they had no idea that the slump would come so soon and be so sharp. Now, less than a year later, rated utility bonds such as those of Seminole, can be sold to yield only 12.5 percentages. Since Cahill anticipated a decline in interest rates when the $500 million was sold has had insisted that the bonds be made immediately callable. The investment bankers handling the issue wanted Seminole to make the bonds non-callable for a year period, but Cahill resisted this proposal. Cahill estimated that Seminole could sell a new issue of 25 year bonds at an interest rate of 12.5 percentages. The call of old and sales of new bonds would takes place in about five to seven weeks. Cahill has proposed, at the last director’s meeting that the company call the 16 percentage bonds and refunds them with a new 12.5 percentage issue. Although the refunding cost would be substantial, he believe that the saving of 3.5 percentage of a year for 25 year on a $500 million issued would be well worth the worth the funding cost .Cahill did not anticipated adverse reaction from the other board member but three of them voices strong opposition to the refunding proposal First was Claude Dykeman, a long term member of the board and the chairman of the Dykeman McClary and, company. This is an investment...
Words: 3036 - Pages: 13
...Q. No 6 . What are the different types of ratios you would use while analyzing the financial statements of a company? Give examples of each of these types. Answer 1: The different types of financial ratios used in the analyzing financial statements of a company are: 1. Liquidity Ratios 2. Leverage Ratios 3. Turnover Ratio 4. Profitability Ratio 5. Valuation Ratio Let us consider the Profit and Loss A/c and Balance Sheet of OM Enterprises Limited to illustrate the calculation of these ratios Profit and Loss Account of OM Enterprises Limited for the year ending on March 31, 2006 |PARTICULARS |AMOUNT (Millions) |AMOUNT (Millions) | |Net Sales | |350 | |Cost of goods sold | |245 | |i) Stock |175 | | |ii) Wages and salaries |30 | | |iii)Other manufacturing expenses |40 | | |Grofit profit | |105 | |Operating Expenses...
Words: 6248 - Pages: 25
...FIN 534 Complete Course Week 1 to Week 11 Download Answer Below http://workbank247.com/q/fin-534-complete-course-week-1-to-week-11-discussi/7837 FIN534 Week 1 Discussion * From the e-Activity, examine ethical behavior within firms in relation to financial management. Provide two (2) examples of companies that have been guilty of ethics-based malfeasance related to financial management and determine why their comeuppance was deserved. * From the scenario, recommend two (2) actions that Trevose Fitness Center (TFC) could take in order to raise capital that will, in turn, enable it to reach its expansion goals. Defend your response. Support your recommendation with two (2) real-world examples of successful implementations of these actions. Download Answer Here http://workbank247.com/q/fin534-week-1-discussion/7817 FIN534 Week 2 Discussion "Financial Statement, Cash Flow, and Taxes" Please respond to the following: Analyze the importance and impact of financial managers being able to understand financial statements. Provide the rationale behind your analysis. Imagine that you are starting a business. Determine the tax considerations that might result in you setting the business up as a proprietorship or a partnership, rather than a corporation. Provide a rationale for your decision. Download Answer Here http://workbank247.com/q/fin534-week-2-discussion/7818 FIN534 Week 2 Homework Set 1 Directions: Answer the following questions on a separate document. Explain...
Words: 4711 - Pages: 19
...POLS 567, Week 1, Spring ‘14 = OVERVIEW OF COURSE syllabus - in sum, course contents: learning objectives have an educational and training component 1. educational component: getting an understanding of the nonprofit sector, its history and present status in the economy, society, and politics 2. training component: involves management issues how to create a well managed npo = WHY DO WE HAVE A THIRD SECTOR? SECTOR ANALYSIS Providers A B C D Types of Goods or Public Sector For-profit Household/ Nonprofit Services Provided Sector Family Sector 1. national defense 2. food 3. housing 4. national parks 5. state parks 6. health care = WHY DO WE HAVE NONPROFITS? - economic explanations/sector analysis o each of the four sectors has certain strengths and constraints in delivering goods and services 1. public sector strengths: * power of taxation, i.e. can compel us to pay in the form of taxes, * provider of public, common, or collective goods * public goods are services from which nobody can be excluded, e.g. national defense * no free-rider problem by coercing payment through taxes * provider of individual, but necessary services for which recipients cannot pay, e.g. K-12 education, some housing, food, medical care * service ethic, promotion of public interest, preservation of human dignity * lack of profit motive ...
Words: 751 - Pages: 4
...businessratioreport ©Key Note Ltd. 2011 All rights reserved No part of this publication may be reproduced, copied, stored in an electronic retrieval system or transmitted save with written permission or in accordance with the provisions of the Copyright and Patents Act 1988. Published by Key Note Ltd. 5th Floor Harlequin House 7 High Street Teddington Richmond Upon Thames TW11 8EE t: O845 504 0452 f: O845 504 0453 e-mail: reports@keynote.co.uk Stringent efforts have been made by Key Note Ltd. to ensure accuracy. However, due principally to the fact that data cannot always be verified, it is possible that some errors or omissions may occur; Key Note Ltd. cannot accept responsibility for such errors or omissions. Details supplied by Key Note Ltd. should only be used as an aid, to assist the making of business decisions, not as the sole basis for taking such decisions. Corporate Telephone Preference Service (CTPS) Under the new Privacy and Electronic Communications Regulations 2004 it is unlawful for a business to make an unsolicited sales & marketing call to a corporate subscriber if they are either registered with CTPS or have requested NOT to receive such calls. Key Note holds and regularly updates (at least every 28 days) their data in accordance with the regulation and ensures their data is compliant, as of the date created. However it is the responsibility of the caller to ensure this data is up to date and as such Key Note do not hold themselves liable for any subsequent...
Words: 165076 - Pages: 661
... We emailed a link to the survey to friends and family asking them to take the survey and forward the link to their contacts. The survey was open for two weeks. We collected 78 responses, 4 of which had to be discarded due to the extreme pre-tax monthly income value. Using the Excel software to conduct Stepwise forward regression analysis, we determined that the three factors with the most statistically significant impact, based on our survey results were: gender, education and experience. It was determined that an individual made more money if they: are male, have a 4-year college degree, and have 8 – 10 years experience in their industry. After reviewing the data and the Excel analysis, we realized that if we had asked for the amount of education completed as a quantitative value instead of qualitative the results could be used to predict the amount that a person’s income potential increases with each year of education completed. We also realized that a question about the number of hours the respondent worked should have been included in the survey. We also felt, with more time and resources, that a more in-depth survey could be done using a more even sampling across the industry fields. This would show how a person’s education impacts their earning potential compared to another working in the same industry. Analysis: After hearing multiple radio ads for local colleges about how the more education someone has, the higher their earning potential is, we decided to put...
Words: 1577 - Pages: 7
...Table of Contents 1.0 Introduction 2-3 2.0 Summary of case 3-4 3.0 Company Background 4-5 4.0 Issue 5 4.1 Overcoming staff resistance 5-7 4.2 Implementation of the system......................................................................8 4.2.1 Feasibility Study………………………………………………...8-14 4.2.2 Gantt Chart 15 4.3Managing Team Confilct 18-20 5.0 Conclusion 20 6.0 Bibliography 21 1.0 Introduction “It has never been a better time to be an accountant”, stated by a president of IFAC. (International Federation of Accountants , 2005) This is because accountants are recognized as contributing to every sector and aspect of the global economy. Accountants not only need to act as auditors, but also management accountants, business leaders, corporate financiers and business advisers. (International Federation of Accountants , 2005) This shows that professional accountant has great responsibility, not only toward the company itself, but also toward stakeholders and the public. Accountant must also act as project manager to take part in the project management activities in some organization. Nowadays, project management is a very important activity in the organization due to the changing environment. Organization need to cope with these changes by upgrade the technology used in the organization, introduce new products or revise their working practices. As a project manager, accountant will face some conflict that happened in the team. This is because...
Words: 5064 - Pages: 21
...Goswami Take Home Exam: (Due within 2 weeks – first week of July) Answer the following question from Investment Detective Case. Q1. If you have only $8 million for investment (i.e. 4 projects) and your WACC is between 9% and 11%, which projects should you choose and why? You need to justify your answer and show detailed analysis. Your assumptions must be pointed out and should be generally acceptable. (20 points) Answer the following question from Rocky Mountain Advanced Genome case. Q2. Assume that Genome industry will grow at a rate of 4 to 6% in maturity, and discount rate may vary between 18 and 20 %. As a representative of RMAG, What will be your arguments so that Big Sur provides the financing for RMAG? Give at least five reasons in support of your argument. Show all computations in your analysis. (30 points) Answer the following questions from Pressco Inc. case. We worked out a base case of scenario A with no change in tax laws in class. Start with that scenario assumptions as given and answer the following questions. Q3. (Scenario B) What is the net present value of the mechanical drying equipment investment opportunity (as of December 1985) assuming a 12% cost of capital for Paperco and assuming (a) the new tax proposals are enacted, (b) the new drying equipment replaces the old in December 1986, and (c) Paperco signs a binding purchase contract soon enough to be “grandfathered” as to the 8% investment tax credit and the use of ACRS depreciation...
Words: 468 - Pages: 2
...Week 7 assignments Task 1: Consider the following table of costs for the Winsome Widget Factory, which operates in a perfectly competitive market. The market price faced by this firm is $6.00 per widget. a. Fill in the formula for AFC, AVC, ATC, MC, TR, MR, and Total Profit at the top of the column in the gray section within the table. b. Fill in the missing values for TFC, TVC, AFC, AVC, ATC, MC, TR, MR, and Total Profit in the blue sections of the table. | Winsome Widget Factory | |Output |Total Fixed Cost | |Barnes & Noble books |-4.00 | |Coca-Cola |-1.22 | |Cigarettes |-0.25 | |Beer |-0.23 | |Gasoline |-0.06 | In your project, address the following questions: Using the elasticity estimates in the table above, classify the price elasticity demand as elastic or inelastic. Explain your reasoning. Explain the implications of those classifications on tax revenue collections when the per-unit tax increases as opposed to decreases. Using those classifications, make some assumptions regarding tax incidence. For instance, will buyers...
Words: 1770 - Pages: 8
...Proposal for Qingyuan Fast Food Restaurant Opening Project Prepared Expressly for Mr. Jason Lee ( Qishuan Li) Director Xiang Zhou Branch Office China Construction Bank Prepared by: Tel: Fax: E-mail: Date: Table of contents Executive Summary 2 Introduction 3 Proposal 3 Findings 3 Strength 4 Opportunities 4 New Premises 4 Services 5 Facilities 5 Cost Breakdown 5 Benefits 6 Schedule 8 Risks and Management Plans 8 Conclusion 10 Appendixes 10 The analysis of the business 10 Customer Profiles 11 Focus Groups 11 SWOT Analysis 12 Strengths 12 Weaknesses 12 Opportunities 13 Threats 13 SMART Analysis 13 Action Plan 14 Activity Flow Chart 16 Project Costs 16 Stakeholder Analysis 17 Risk Analysis and Management Plan 18 The Project Framework 19 Executive Summary Chinese people attach great importance to “eating”. We can know it by the saying “Bread is the staff of life”. China's dishes highly stress on its color, aroma, taste, shape and meaning. As a result, many Chinese come to overseas and make their living by opening restaurants, which has become the fundamental settlement in the world. Similarly, opening various styles of restaurants in the domestic cities of the appropriate location is a great business opportunity. Based on this, a great business opportunity is to open a fast-food restaurant, named Qingyuan Fast...
Words: 4488 - Pages: 18
...139 Part 2 Costs and Decision Making Chapter 5 Cost Behavior and Relevant Costs Chapter 6 Cost-Volume-Profit Analysis and Variable Costing Chapter 7 Short-Term Tactical Decision Making Chapter 8 Long-Term (Capital Investment) Decisions 140 Chapter 5 Cost Behavior and Relevant Costs Chapter 5 U 141 Cost Behavior and Relevant Costs nderstanding the behavior of costs is of vital importance to managers. Understanding how costs behave, whether costs are relevant to specific decisions, and how costs are affected by income taxes allows managers to determine the impact of changing costs and other factors on a variety of decisions. This chapter introduces concepts and tools that will be used in Chapters 6 through 8. Chapter 5 begins with a definition of cost behavior and illustrates the concepts of fixed costs, variable costs, and mixed costs. Next, the chapter revisits the concept of relevant costs (introduced in Chapter 1) as it applies to variable and fixed costs. The chapter also describes the impact of income taxes on costs. Learning Objectives After studying the material in this chapter, you should be able to: 1 Describe the nature and behavior of fixed, variable, and mixed costs Analyze mixed costs using regression analysis and the high/low method 2 Distinguish between relevant and irrelevant costs and apply the concept to decision making 3 Illustrate the impact of income taxes...
Words: 13858 - Pages: 56
