MEMORANDUM
The cost of goods sold can be calculated by multiplying the unit cost ($19) by the
quantity (14), resulting in a cost of goods sold of $266.
The gross profit can be calculated by subtracting the cost of goods sold from the revenue,
i.e., $994 - $266, which equals $728.
To determine the discounted unit cost, we can subtract the discount rate (12% or 0.12)
from 1, multiply it by the unit cost ($19), and subtract the result from the unit cost.
Therefore, the discounted unit cost is $19 - ($19 * 0.12) = $16.72.
Recommendations:
Based on the analysis conducted, the following recommendations are proposed to enhance
BIKENOW's national sales strategy and market channels:
1.
1. Examine the variables that affect the varying monthly sales revenue trends in more
detail, paying special attention to the dips shown in January and May. To find areas for
improvement, this study should take into account external variables, consumer behaviour,
and market circumstances.
2.
2. Look into the reasons why May and July saw negative growth rates with the goal of
resolving any operational or marketing inefficiencies that led to these dips.
3.
3. Take steps to reduce the cost of goods supplied while preserving product quality,
boosting gross profit margin. This can entail settling on more favourable terms with
suppliers, optimising the operations of the supply chain, or looking into other sourcing
possibilities.
4.
4. Look into cross-selling and upselling options to boost income and client retention. This
can entail establishing loyalty programmes, combining complementary items, or creating
tailored suggestions based on client interests.
5.
5. Use data-driven insights to pinpoint target markets and adjust marketing plans as
necessary. To successfully manage resources and optimise marketing initiatives, use
consumer segmentation and predictive analytics.
6.
6. Improve the reporting system and sales dashboard to offer real-time visibility into
important performance measures, facilitating prompt decision-making and keeping track
of sales objectives.
7.
7. Look into the reasons why May and July saw negative growth rates with the goal of
resolving any operational or marketing inefficiencies that led to these dips. External
elements like shifts in customer behaviour, competition activity, or economic situations
should be taken into account in this research.
8. boosting the gross profit margin while improving quality. This might entail upgrading
manufacturing procedures, researching alternate sourcing possibilities, negotiating better
terms with suppliers, or streamlining inventory management procedures.
