"Hallstead Jewelers was one of the largest jewelry and gift stores in the United States for 83 years. Customers came from the tri-state regions to buy from Hallstead’s extensive diamond collections in each department. Any gift from Hallstead’s had an extra cache attached to it as they were known for having the best. Even though the principal retail shopping areas shifted two blocks west‚ Hallstead’s reputation and selection still brought in customers. In 1999 however‚ sales became stagnate
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father’s death‚ three siblings‚ Gretchen Reeves‚ Michaela Hurd‚ and James [Hallstead]‚ inherited the Hallstead family jewelry business that has been in operation for the past 83 years. Hallstead Jewelers‚ located in the largest city of the tri-state region‚ has an established reputation for quality and selection and has grown into one of the largest jewelers in the United States. Nonetheless‚ since 1999‚ Hallstead Jewelers’ profits have been slipping and sales have stagnated. Two years ago it
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Report for Hallstead Jewelers Hallstead Jewelers is a jewelry merchandiser‚ which sells range from fine jewelry‚ gems to tabletop gifts. It has been established for 83 years and once has become one of the largest jewelry retailers in the past. With the changing of retail jewelry industry‚ it has appeared two competitive competitors: Tiffany & company‚ which was the largest diamond seller in the US and be known as their “blue box”‚ and Blue Nile‚ which found online and was the second diamond
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COMPANY OVERVIEW Hallstead Jewelers has been one of the premiere jewelers in the United States for 83 years. Located in the largest city in the tri-state area‚ the company has remained a family business since its inception. Up until 1999‚ the company had operated in the same location without the need to expand or relocate due to its superb reputation and loyal customer base. However‚ Hallstead Jewelers reached a point during that year when profits began to decrease and sales became stagnant. After
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Hallstead Jewelers 1.) Break-even ticket sales increased from 4533 in 2003‚ to 4998 in 2004 and 7491 in 2006. Break-even point in Sales Dollars has changed from $7‚285 in 2003‚ to $7‚617 in 2004 and $11‚634 in 2006. (Table 1) The margin of safety has changed from $1‚298 in 2003‚ to $485 in 2004‚ and a loss of $923 in 2006. (Table 2) There is a decrease from 2003 to 2006. Fixed cost per month attributed to stores relocation and subsequent renovations caused a decrease from 2003 to
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Case #1 Hallstead Jewelers Answers 1. We see an increase in the break-even point‚ both in dollars and in sales tickets‚ from year 2003 to 2006. This increase is not as dramatic between the years 2003 and 2004 as it is between 2004 and 2006. The increase in break-even point in sales tickets is 1615‚80 and 7623‚90 respectively. The increase in the first year is due to the increase in fixed costs and also the decrease in sales. The increase between 2004-2006 is due to the dramatic increase
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Hypothesis Year $(1‚109.41) 13‚463‚440 9633 (Table 2. All the related result can be found in exhibit b) 3. Originally‚ the break-even point was 7505 units in 2006 (as shown in Table 1). However‚ if commissions were to be removed from Hallstead Jewelers‚ we would see our break even point decrease to 6723 units (rounded up to the whole unit).
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CASE: Hallstead Jewelers 1) How has the breakeven point in number of sales tickets (number of customer orders written) and breakeven in sales dollars changed from 2003‚ to 2004‚ and to 2006? How has the margin of safety changed? What caused the changes? The Breakeven point in number of sales tickets were “4‚535”‚ “5‚000” and “7‚505” in 2003‚ 2004 and 2006. The Breakeven in sales dollars for the three years were “$7‚287‚043”‚ “$7‚620‚696” and “$11‚655‚277” respectively. While the margin of safety
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Managerial Accounting – Question 1 Break even point in number of sales tickets 2003 2004 average sales tickets variable cost fixed cost sales tickets to break even 1607 725 2954 3349 1524 768 2990 3955 2006 1553 814 3893 5267 Question 2 If average prices were reduced 10% and unit sales increased to 7‚500‚ would the company’s income be increased? 2006 Avg. Sales Ticket Unit Sales Revenue COGS Fixed expenses $1553 6897 $10‚711‚041 $5‚570‚000 $5‚547‚000 2007 $1398 7500 $10‚485‚000 $6‚054
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Except COGS and Commission which are variable costs‚ all others are fixed costs. All in thousands of dollars (except sales tickets) 2003 2004 2006 Variable Cost (VC) 4755 4537 6106 Fixed Cost (FC) 3250 3353 5011 Average sales ticket price 1.607 1.524 1.553 Sales tickets (in nos.) 5‚341 5‚316 6‚897 Variable Cost per sales ticket 0.9 0.9 0.9 Breakeven Qty 4‚535 5‚001 7‚506 Breakeven Sales = Breakeven Qty x average sales ticket price Breakeven Sales 7‚287 7‚621 11‚655
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