A. Current Situation What role has Altius Golf’s choice of channels of distributions played in its loss of market share? What other factors have contributed to its loss of market share? What will happen if Altius maintains the status quo? Altius Golf’s choices in its channels of distribution have played a major role in its loss of market share. There are two distribution channels when it comes to the golf market‚ on-course and off-course‚ which account for 40% and 60% of unit sales respectively
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EXAM 1 Question 1 1.5 out of 1.5 points Managerial accounting stresses accounting concepts and procedures that are relevant to preparing reports for Selected Answer: internal users of accounting information. Correct Answer: internal users of accounting information. Question 2 1.5 out of 1.5 points The principle that managers follow when they only investigate departures from the plan that appear to be significant is commonly known as Selected Answer: management by exception. Correct
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on the CVP analysis of the three business plans provided by Digital Ltd‚ I would like to recommend the Alternative 1 as the most profitable one. This is mainly for three reasons‚ which are motivation factor‚ lower fixed cost and higher contribution margin and highest net income of all the three. Motivating is a very important factor in boosting the sales (Businessballs‚ 2012). Since there is a motivation factor included in Alternative 1‚ it would be highly beneficial for the company as the forecasted
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Summary Prestige Data Services is a subsidiary of Prestige Telephone Company‚ designed to perform data processing for the telephone company and also to sell computer services to other companies and organizations. The subsidiary started operations in 1995 and has yet to experience a profitable month and by the end of 1996 its income was low enough to necessitate a report to shareholders. Mrs. Bradley thinks the company just needs more time while Mr. Rowe feels it is time to reassess Prestige
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strength of its brand equity‚ the strong demand for its products and its helpful salesforce. The company also used selective distribution policy which meant less competition among distributors and thus this policy preserved the distributors’ profit margins. Question 3: There are several possibilities here. The important ones (not counting no response) are: • Spend more resources in educating customers about the benefits of bubbles • Launch uncoated bubbles • Cut prices of the products
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HEALTHY SPRING WATER COMPANY PROBLEM 1a DEFINING THE PRICE-VOLUME TRADEOFF FOR A 20% PRICE INCREASE The Health Spring Water Company sells bottled water for offices and homes. The price of the water is $20 per 10 gallon bottle and the company currently sells 2‚000 bottles per day. Following is a summary of the company’s income and costs on a daily basis. Sales Revenue $40‚000 Incremental Variable Costs $16‚000 Nonincremental Fixed Costs $20‚000 Note: You can assume that
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) Philosophy + History * 1884: Founder - Michael Marks philosophy: ‘Don’t ask the price – It’s one penny’ * Streamlined accounting to focus more on search for high-quality products * High-turn over counterbalanced low profit margins * 1903: took Thomas Spencer into partnership and M&S was born * 1914-1955: son builds on founding father’s strategy * emphasis on new technologies‚ social service to customers & employees * influenced by trip to US‚
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COMPANY BACKGROUND HISTORY Samsung was formed in 1938 by Lee Byung-chull as a trading company based in Su-dong. The small company started as a grocery‚ trading goods produced in and around the city as well as its own noodles. The company grew and soon expanded to Seoul in 1947 but left once the Korean War broke out. After the war‚ Lee expanded it into textiles and built the largest woollen mill in Korea. And today Samsung Group is a South Korean based company that includes a number of subsidiaries
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manager of Jane-HW7 location is entitled to at least $1‚000 bonus. The total bonus amount = $1‚000 + ($5‚278 - $230) /10 x $1 = $1‚504.80 Budgeted Actual Cars washed 18‚400 12‚690 Price per car wash $10 $9.50 Variable cost $5 $4.75 Contribution margin $5 $4.75 Static budget variance = Actual results x Static budget amount (27 x 470 x $4.75) – ( 23 x 800 x $5) = $60‚277.50 - $92‚000 = $31‚ 722.50 U Flexible budget variance = Actual sales in units x (actual CM – Budgeted CM) 12‚690 x ($4.75 -
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and nearby Euro countries. 2. Mission’s price for the coupling in questions (PT40) is $1.26‚ FOB‚ Los Angeles. The target gross margin for exports is 30% FOB $1.26 (location Los Angeles) COGS $ .88 (Fixed) GTM $0.38 CIF $1.3627= $1.36 FOB (1.05) (1.03)= 1.0815 Pricing FOB $1.33- $.88= $.45 $1.54- $.88=$.66 Target (Gross Margin for exports 30%) 3. Mission has a reputation for high prices in the US‚ and running the factory below capacity limits will raise
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