BUSL.WK8 DISCUSSION

Grant's Western Wear is a retailer of western hats located in Atlanta, Georgia. Although Grant's carries numerous styles of western hats, each hat has approximately the same price and invoice purchase cost, as shown below. Sales personnel receive large commissions to encourage them to be more aggressive in their sales efforts. Currently the economy of Atlanta is really humming, and sales growth at Grant's has been great. However, the business is very competitive, and Grant has relied on its knowledgeable and courteous staff to attract and retain customers, who otherwise might go to other western wear stores. Also, because of the rapid growth in sales, Grant is finding it more difficult to manage certain aspects of the business, such as restocking of inventory and hiring and training new salespeople.           Sales price $ 39.00   Per-unit variable costs:       Invoice cost   18.75   Sales commissions   5.55   Total per-unit variable costs $ 24.30   Total annual fixed…

Tom's Sports Wear is a retailer of sports hats located in Atlanta, Georgia. Although Tom's carries numerous styles of sports hats, each hat has approximately the same price and invoice purchase cost, as shown below. Sales personnel receive large commissions to encourage them to be more aggressive in their sales efforts. Currently the economy of Atlanta is really humming, and sales growth at Tom's has been great. However, the business is very competitive, and Tom has relled on its knowledgeable and courteous staff to attract and retain customers, who otherwise might go to other sports wear stores. Also, because of the rapid growth in sales, Tom is finding it more difficult to manage certain aspects of the business, such as restocking of inventory and hiring and training new salespeople. $ 32.00 Sales price Per-unit variable costs: Invoice cost Sales commissions Total per-unit variable costs Total annual fixed costs: Advertising Rent Salaries Total fixed costs The annual breakeven point…

Bubba’s Western Wear is a western hat retailer in Lubbock, Texas. Although Bubba’s carries numerous styles of western hats, each hat has approximately the same price and invoice (purchase) cost, as shown in the following table. Sales personnel receive a commission to encourage them to be more aggressive in their sales efforts. Currently, the Lubbock economy is really humming, and sales growth at Bubba’s has been great. The business is very competitive, however, and Bubba, the owner, has relied on his knowledgeable and courteous staff to attract and retain customers who otherwise might go to other western wear stores. Because of the rapid growth in sales, Bubba is also finding the management of certain aspects of the business more difficult, such as restocking inventory and hiring and training new salespeople.   Sales price $ 80.00 Per unit variable expenses   Purchase cost 26.50 Sales commissions 28.50 Total per unit variable costs $ 55.00 Total annual fixed expenses…

Bubba’s Western Wear is a western hat retailer in Lubbock, Texas. Although Bubba’s carries numerous styles of western hats, each hat has approximately the same price and invoice (purchase) cost, as shown in the following table. Sales personnel receive a commission to encourage them to be more aggressive in their sales efforts. Currently, the Lubbock economy is really humming, and sales growth at Bubba’s has been great. The business is very competitive, however, and Bubba, the owner, has relied on his knowledgeable and courteous staff to attract and retain customers who otherwise might go to other western wear stores. Because of the rapid growth in sales, Bubba is also finding the management of certain aspects of the business more difficult, such as restocking inventory and hiring and training new salespeople.   Sales price $ 80.00 Per unit variable expenses   Purchase cost 26.50 Sales commissions 28.50 Total per unit variable costs $ 55.00 Total annual fixed expenses…

Bubba’s Western Wear is a western hat retailer in Lubbock, Texas. Although Bubba’s carries numerous styles of western hats, each hat has approximately the same price and invoice (purchase) cost, as shown in the following table. Sales personnel receive a commission to encourage them to be more aggressive in their sales efforts. Currently, the Lubbock economy is really humming, and sales growth at Bubba’s has been great. The business is very competitive, however, and Bubba, the owner, has relied on his knowledgeable and courteous staff to attract and retain customers who otherwise might go to other western wear stores. Because of the rapid growth in sales, Bubba is also finding the management of certain aspects of the business more difficult, such as restocking inventory and hiring and training new salespeople.   Sales price $ 80.00 Per unit variable expenses   Purchase cost 26.50 Sales commissions 28.50 Total per unit variable costs $ 55.00 Total annual fixed expenses…

Bubba’s Western Wear is a western hat retailer in Lubbock, Texas. Although Bubba’s carries numerous styles of western hats, each hat has approximately the same price and invoice (purchase) cost, as shown in the following table. Sales personnel receive a commission to encourage them to be more aggressive in their sales efforts. Currently, the Lubbock economy is really humming, and sales growth at Bubba’s has been great. The business is very competitive, however, and Bubba, the owner, has relied on his knowledgeable and courteous staff to attract and retain customers who otherwise might go to other western wear stores. Because of the rapid growth in sales, Bubba is also finding the management of certain aspects of the business more difficult, such as restocking inventory and hiring and training new salespeople.   Sales price $ 80.00 Per unit variable expenses   Purchase cost 26.50 Sales commissions 28.50 Total per unit variable costs $ 55.00 Total annual fixed expenses…

Sphinx plc manufacturers a variety of electronic devices, including mobile phones, laptops, televisions and audio equipment. Sales are made directly to customers via Sphinx’s website. However, the majority of sales are through the retail networks of various third-party distributors, who operate both online and through high street stores. Sphinx is considering a number of changes to its operating model: Increasing sales volume by 30%, via a major marketing campaign, with no change to product lines or mix Increasing sales volume by 30%, through introduction of a variety of new product lines, that will be sold along with existing products Taking advantage of an early payment discount offered by its major raw material supplier Saving costs by downsizing the credit control team by 20% Reducing credit terms to 3rd party distributors from 90 to 60 days   i) Which of the proposed changes is most likely to create a “pull on liquidity”? Explain your answer in a single sentence ii) Which of the…

Sphinx plc manufacturers a variety of electronic devices, including mobile phones, laptops, televisions and audio equipment. Sales are made directly to customers via Sphinx’s website. However, the majority of sales are through the retail networks of various third-party distributors, who operate both online and through high street stores. Sphinx is considering a number of changes to its operating model: Increasing sales volume by 30%, via a major marketing campaign, with no change to product lines or mix Increasing sales volume by 30%, through introduction of a variety of new product lines, that will be sold along with existing products Taking advantage of an early payment discount offered by its major raw material supplier  request    i) Which of the proposed changes is most likely to result in a decrease in the operating cycle? Explain your answer in a single sentence ii) Which of the proposed changes is least likely to result in a change in the cash conversion cycle (also known as…

Crawford’s Books and Things has a traditional bookstore housed downtown Charlotte. The store has been there forty years, and many customers love the fact that they can hold the books in their hands and browse the offerings. Crawford’s just started an online book division for people who like to order books online. EVA for the Charlotte store is about $13 million, while EVA for the online division shows a value of –$2.2 million. Which measures for the customer and internal processes dimensions of the balanced scorecard would be appropriate for the online division? A. customer measure might be the percent of customers making repeat purchases; an internal process measure might be the number of times per month that the website is down. B. customer measure might be time to deliver books; an internal process measure might be the percentage of website visits that translate into sales. C. customer measure might be the number of new customers who come via recommendations from existing ones;…

Kindmart is an international retail store. Kindmart’s managers are considering implementing a new business-to-business (B2B) information system for processing merchandise orders. The current system costs Kindmart $2,000,000 per month and $55 per order. Kindmart has two options, a partially automated B2B and a fully automated B2B system. The partially automated B2B system will have a fixed cost of $6,000,000 per month and a variable cost of $45 per order. The fully automated B2B system has a fixed cost of $14,000,000 per month and a variable cost of $25 per order. Based on data from the past two years, Kindmart has determined the following distribution on monthly orders: Required: Prepare a table showing the cost of each plan for each quantity of monthly orders.  What is the expected cost of each plan?  In addition to the information system’s costs, what other factors should Kindmart consider before deciding to implement a new B2B system?

Kindmart is an international retail store. Kindmart’s managers are considering implementing a new business-to-business (B2B) information system for processing merchandise orders. The current system costs Kindmart $2,000,000 per month and $55 per order. Kindmart has two options, a partially automated B2B and a fully automated B2B system. The partially automated B2B system will have a fixed cost of $6,000,000 per month and a variable cost of $45 per order. The fully automated B2B system has a fixed cost of $14,000,000 per month and a variable cost of $25 per order. Based on data from the past two years, Kindmart has determined the following distribution on monthly orders: Monthly Number of Orders          Probability     300,000                                  0.25  500,000                                      0.45  700,000                                    0.30  Q2. What is the expected cost of each plan?

Kindmart is an international retail store. Kindmart’s managers are considering implementing a new business-to-business (B2B) information system for processing merchandise orders. The current system costs Kindmart $2,000,000 per month and $55 per order. Kindmart has two options, a partially automated B2B and a fully automated B2B system. The partially automated B2B system will have a fixed cost of $6,000,000 per month and a variable cost of $45 per order. The fully automated B2B system has a fixed cost of $14,000,000 per month and a variable cost of $25 per order. Based on data from the past two years, Kindmart has determined the following distribution on monthly orders: Monthly Number of Orders          Probability         300,000                                  0.25        500,000                                      0.45        700,000                                    0.30  Q1. Prepare a table showing the cost of each plan for each quantity of monthly orders.

First image is with the answers that are given and the questions scenarios . Second image is with more question scenarios . I need help and explanations on what answer to match with what scenarios .It’s about the best way for funding business in the given scenario

A successful franchise owner of a prestigious sporting goods chain is feeling the effects of technology, with more and more online sales and less and less customers in the shops. Locally there are three stores, and typically each store needs the following positions staffed for optimum profitability and success:  a store manager an assistant manager five department managers and 20 customer service representatives,  Averaging $1 200 000 in annual revenue. However, there has been a trend of 20 percent sales decline in stores, with an increase of 30 percent sales online (last year the online revenue stream was $300 000). The franchise owner was able to handle all of the online sales with a team of five full-time remote workers (working from home) last year.  The owner wants each store to maintain its productivity, which he measures as the revenue per employee. He also thinks that there is potential to grow the online business. Please help the owner by answering the following questions.…

Nagle Devices produces medical instruments, primarily for hospital and medical office use. A new design for their best-selling hospital thermometer has the marketing team considering possibly entering the home market. This would be new for Nagle, because they would be selling to large chain retailers and online resellers, rather than direct to the user.   Management at Nagle Devices requires an operating profit of 30 percent of manufacturing costs. After doing some market research in this new market, the marketing team has determined that the new thermometer could sell for no more than $46.80.   The manufacturing department at Nagle estimates for the following manufacturing costs for the new thermometer as follows:   Direct materials $ 21.20 Direct labor 8.70 Manufacturing overhead 7.10 Total $ 37.00   Required: a. Suppose Nagle Devices uses cost-plus pricing, setting the price to manufacturing costs plus 30 percent of manufacturing costs. What price should it charge for…

Lizzy's is a retail clothing store, specializing in formal wear for weddings. They purchase their clothing for resale from specialty distributors and manufacturers. Recently the owners of Lizzy have noticed an increased interest in costume jewelry and fashion accessories among their clientele. If the owners decide to expand their business to include these products, what cost data would they need to collect and analyze prior to expanding their business?