Bock‚ is not profitable and the company has a loss of $38.94 for each batch of bock that they sell. These losses were originally masked when SDM calculated their costs using a plant-wide allocation based on direct-labor hours. If they cannot make a profit from bock‚ either by reducing the cost to produce it‚ or by increasing the price at which it is sold‚ this product line may need to be eliminated. However‚ without knowing more about the market that they operate in this may cause further losses and
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9/16/2012 1. Why was Dakota’s existing pricing system inadequate for its current operating environment? Profit margins varied based upon the size of the order‚ larger orders were more profitable than small orders. Based upon customer order size‚ prices should have been varied and the cost determination of the DOP should have been evaluated as it generated a loss. 2. Develop an ABC system for Dakota based on Year 2000 data. Calculate the activity cost-diver rate for each activity in 2000. a
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to predict the demand and the profit to choose the right supply chain. It must consider demand predictability‚ product life cycle‚ market standard response‚ product variety‚ and service. When products have a stable demand as milk ‚ brain ‚ basic products pattern and therefore are reasonably predictable‚ the planning of their supply is easy although the competition is intense and the profit is low. On the other hand are unpredictable products often carry higher profit; these products are innovative
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Unfortunately‚ with tournament profits averaging a loss of almost $4‚000 a year‚ CYSL’s board of directors was beginning to express frustration with the lack of profits generated by the Craddock Cup. Rivaldo knew the Craddock Cup was in danger of being canceled‚ and that he risked losing his job with CYSL if he did not devise a plan to increase tournament profits. He decided to review the organization and expenses of the Craddock Cup to see if there was a way to increase the cup’s profits and continue the tournament
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III. Loyalty * Possible profits 2. Financial situation and expected return of a customer IV. Examination of key figures V. Analyzing possibility of default VI. Scenario analysis and future outlook * Probabilities of profit Each account is considered as an individual project. Especially selecting the marginal credit applications is under review since the marginal accounts make the difference between profit and loss‚ as it is stated in the case
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senior to get in contact with us and follow everything we do. We have currently £2‚000 in savings to invest on and are currently looking to have an additional investment of £5‚000 for an efficient start up where it will lead to the best capacity and profit
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for a profit. If Walmart continues to increase and expand‚ stocks will go up thus creating a profit for the investor which also helps the company too. If the store decreases its earnings‚ then the shareholders might take their money and invest in something else which would take away from the company. Consumers are the largest contributing factor why Walmart is one of the most profitable retailers in the world. By sticking to its affordability motto‚ Walmart will continually bring in profits and
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Unfortunately‚ Couch is not a strong performer; the lawnmower market is in decline and profits have slipped. Salt Water is known for its modern management systems and would like all managers at Couch to participate in the performance-related pay system that is used in the other two divisions. The profit-sharing plan applies to senior divisional managers only. It is based on placing 10 percent of Salt Water’s profits before interest and income tax into a pool‚ which is then shared by the senior divisional
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reason Lowe’s could have adopted a similar strategy as the Depot‚ with equally successful results. Local store managers simply were not given the authority. Lack of decentralization costs profits. This lack of foresight specifically can be pointed to as the greatest single factor in Lowe’s lack of comparable profit to the Depot. One simply has to compare a
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line‚ the total time spent in the restaurant‚ and the service facility utilization (University of Phoenix‚ 2002). Performance Metrics | |Groups |Groups |Balked 2/4 |Avg. wait |Avg. queue |Profit |Lost sales | | |of 2 |of 4 | | | | | | |Week 1-2 |71 |105 |2/38
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