Rationalize Channel Margins to Optimize Distribution Costs By Makarand Joshi Asst. Professor - Orange City Institute of Higher Education‚ Nagpur Email: makarand1234@gmail.com; Mobile 9422805719 ABSTRACT: Distribution Channel Margins form an important component of the distribution cost which directly affects the bottom line of any company. While the companies are trying to reduce the distribution costs‚ to improve their own margin pressures‚ there seem to be little innovations in
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CAPSTONE CASE 1: ECO-PRODUCTS‚ INC. End-of-Case Assignments: Suggested Discussions and Analyses A. Describe Eco-Products’ early history (1990 through 2003). Would you view the firm during that period as being a life-style business‚ an entrepreneurial venture‚ or? Why? Steve Savage and his father founded the company in 1990 with the intent to provide eco-friendly paper and janitorial supplies. They chose to locate the business in Boulder‚ Colorado‚ a community known for its support
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Case Study: Contribution Margin and Variance Analysis By: Sachin Malhotra Student ID:xxxxxxxxx Presented To: Prof. G. Dunning Course: 04-70-256 Section 2 Date: November 28‚ 2008 Explanation of Profit Decline The decline in profits was due to a combination of various market‚ as well as‚ production factors. Firstly‚ the decreased market share was a major cause of the decline in the profits. This was quite surprising for a company that is operating in a growing market. The total market for
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midterm as a Word document. 1. You want to use break-even and target profit analysis with respect to the introduction of a new product in the marketplace. Your manager says you are wasting your time because the best determination of profitability is the income statement after this product has been introduced. Explain why your manager is wrong. In order to fully understand the process of profitability within a business‚ we must understand what break-even and target profit analysis represent and the
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MUSIMUNDO? HOW DO THESE FACTORS AFFECT THE BUDGETING PROCESS? Strategic Context Quintana wants to strategically reward the managers of the Musimundo stores for meeting their budgetary goals; however‚ some managers were completely unable to do this and other managers were guaranteed their sales quota. Quintana can rectify this situation by modifying the Musimundo incentive system. Quintana can use multiple performance measures to reward his managers. These performance measures can be sales based
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Point-of-Sale Vulnerabilities Hacker Factor Solutions 27-Aug-2007 Point-of-Sale Vulnerabilities Dr. Neal Krawetz Hacker Factor Solutions White Paper Copyright 2006-2007 Hacker Factor All rights reserved FOIA Exempt Document history: Version 1.0: Initial draft. Version 1.1: Incorporated feedback from reviewers. Version 1.2: Incorporated additional feedback. Version 1.3: Limited release. Version 2.0: Public release. Hacker Factor P.O. Box 270033 Fort Collins‚ CO 80527-0033 http://www
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CHAPTER 16 COST ALLOCATION: JOINT PRODUCTS AND BYPRODUCTS 16-1 Exhibit 16-1 presents many examples of joint products from four different general industries. These include: Industry Separable Products at the Splitoff Point Food Processing: • Lamb • Lamb cuts‚ tripe‚ hides‚ bones‚ fat • Turkey • Breasts‚ wings‚ thighs‚ poultry meal Extractive: • Petroleum • Crude oil‚ natural gas 16-2 A joint cost is a cost of a production process that yields multiple products simultaneously. A separable
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advertising is outdated. It was previously‚ to endorse a product and praise goodness to induce the public to buy. They are now brainwashing consumers to buy their products using images to sell the product. The advertiser ’s aim is to make the product look as good as it can through an attractive image. There are statistics‚ which I obtained from a Dolly Magazine‚ 16th May 2000‚ which proves that one out of four people in Australia buy a product because of the image shown in the advertisement . The images
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remaining unchanged. To note the facts‚ the current volume provided will now be expressed as 28‚600 patient days. The current average daily cost per patient day will remain at $90. The payer mix would remain the same. The previous charge patient revenue was $750‚000 for 6‚000 patient days‚ which calculated to $125 per patient day. The previous fixed patient revenue was $1‚800‚000 for 20‚000 patient days‚ which calculated to $90 per patient day. The total costs for the new volume of 28‚600 patient days
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ANALYSIS AND PLANNING Exercise 3-3 a. Sales $800‚000 Variable costs (380‚000) Contribution margin $420‚000 Contribution margin ratio = $420‚000/$800‚000 = 0.525 Annual break-even dollar sales volume = $210‚000/0.525 = $400‚000 b. Annual margin of safety in dollars: Sales $800‚000 Break-even sales dollars (400‚000) Margin of safety $400‚000
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