Garden Route Casino Essay
The Garden Route Casino is a small to medium sized casino with 16 gaming tables and 412 slot machines.
The author analysed the table’s financial statements. In the tables department costs have already been cut and reduced in many areas with incremental savings of 10%. The author has identified a cost saving on the equipment expense line by extending the life span of the equipment. Currently equipment is being replaced every five years. The author will do a cost analysis and compare the cost saving by extending the lifespan of the equipment by an additional year.
This would be an incremental saving of 10% across the same expense line and result in a 20% saving over six years. (Coyne Kevin P, 2010)
Cost Analysis
The author has identified three areas in the equipment expense line saving that could be implemented. These are gaming tables, card game shufflers and roulette chipping machines.
Gaming tables are a huge …show more content…
The consequences of rising costs have a financial outcome. Cost management is critical as costs should never grow more than revenue and this is a challenge for any company. Digging through the expenses to find where reductions can be made is essential if companies want to increase the net profit margin.
Currently the Garden Route Casino is replacing equipment every five years, often there is no need to change equipment this often as the equipment could still be in good working order. However, gaming equipment many not be kept on the gaming floor for longer than seven years. The author recommends reducing costs by extending the life of a product and not by spending less.
The above cost saving would be very effective in terms of rand value as all of the gaming equipment is imported from the United States of America and is paid for in dollars. This would keep operational costs down and is almost a risk free
The author analysed the table’s financial statements. In the tables department costs have already been cut and reduced in many areas with incremental savings of 10%. The author has identified a cost saving on the equipment expense line by extending the life span of the equipment. Currently equipment is being replaced every five years. The author will do a cost analysis and compare the cost saving by extending the lifespan of the equipment by an additional year.
This would be an incremental saving of 10% across the same expense line and result in a 20% saving over six years. (Coyne Kevin P, 2010)
Cost Analysis
The author has identified three areas in the equipment expense line saving that could be implemented. These are gaming tables, card game shufflers and roulette chipping machines.
Gaming tables are a huge …show more content…
The consequences of rising costs have a financial outcome. Cost management is critical as costs should never grow more than revenue and this is a challenge for any company. Digging through the expenses to find where reductions can be made is essential if companies want to increase the net profit margin.
Currently the Garden Route Casino is replacing equipment every five years, often there is no need to change equipment this often as the equipment could still be in good working order. However, gaming equipment many not be kept on the gaming floor for longer than seven years. The author recommends reducing costs by extending the life of a product and not by spending less.
The above cost saving would be very effective in terms of rand value as all of the gaming equipment is imported from the United States of America and is paid for in dollars. This would keep operational costs down and is almost a risk free