Problem 1.1 Gross profit: [8 Marks] During this year, merchandise is sold for $500,000 cash and $1,300,000 on account. An additional $50,000 is received as a non-refundable deposit for future services. The cost of the merchandise sold is $1,200,000. What is the amount of the gross profit? Zeta Tech purchases 7 headlamps for $6 each and sells them to customers for $11 each. Zeta Tech also paid $10 for advertising. What is Zeta Tech's total gross profit? Problem 1.2 Case Study: [15 Marks] Case Study: Addressing Customer Satisfaction in a Retail Business A national retail chain was facing declining customer satisfaction rates. Despite having a strong reputation for its wide range of products and competitive prices, customer complaints about long checkout times, unfriendly staff, and inventory shortages increased. The management team, led by Laura, recognized that the company's customer service practices needed to improve to maintain its market position. Laura conducted a thorough review of customer feedback, which revealed that many customers felt their concerns were not being addressed promptly. Furthermore, the checkout process was often slow due to outdated technology, and the store staff appeared overwhelmed during peak hours. To tackle these issues, Laura and her team implemented a multifaceted strategy. First, they upgraded the point-of-sale (POS) systems to speed up transactions and reduce wait times. This also allowed for faster updates on inventory, reducing the chances of product shortages. Second, the company introduced a new customer service training program to ensure that staff members were equipped to handle complaints and assist customers more effectively. Third, Laura reorganized staff shifts during peak hours to ensure there were enough employees to handle customer flow. A feedback loop was also established, allowing customers to directly submit their concerns and suggestions via a mobile app, ensuring that management could address issues more quickly. After implementing these changes, the company saw a significant improvement in customer satisfaction. Checkout times were reduced, inventory shortages decreased, and customer service ratings improved. Laura and her team continued to monitor customer feedback through the mobile app and regularly adjusted store operations based on the data they collected. This proactive approach allowed the retail chain to regain customer trust and strengthen its market position. Effective technology upgrades, staff training, and proactive feedback management proved to be key components of the company's success in addressing customer concerns. Questions: What were the primary causes of customer dissatisfaction, and how did the management address these issues? How did technology and employee training contribute to improving the overall customer experience, and what long-term impact did this have on the company?

Problem 1.1 Gross profit: [8 Marks] During this year, merchandise is sold for $500,000 cash and $1,300,000 on account. An additional $50,000 is received as a non-refundable deposit for future services. The cost of the merchandise sold is $1,200,000. What is the amount of the gross profit? Zeta Tech purchases 7 headlamps for $6 each and sells them to customers for $11 each. Zeta Tech also paid $10 for advertising. What is Zeta Tech's total gross profit? Problem 1.2 Case Study: [15 Marks] Case Study: Addressing Customer Satisfaction in a Retail Business A national retail chain was facing declining customer satisfaction rates. Despite having a strong reputation for its wide range of products and competitive prices, customer complaints about long checkout times, unfriendly staff, and inventory shortages increased. The management team, led by Laura, recognized that the company's customer service practices needed to improve to maintain its market position. Laura conducted a thorough review of customer feedback, which revealed that many customers felt their concerns were not being addressed promptly. Furthermore, the checkout process was often slow due to outdated technology, and the store staff appeared overwhelmed during peak hours. To tackle these issues, Laura and her team implemented a multifaceted strategy. First, they upgraded the point-of-sale (POS) systems to speed up transactions and reduce wait times. This also allowed for faster updates on inventory, reducing the chances of product shortages. Second, the company introduced a new customer service training program to ensure that staff members were equipped to handle complaints and assist customers more effectively. Third, Laura reorganized staff shifts during peak hours to ensure there were enough employees to handle customer flow. A feedback loop was also established, allowing customers to directly submit their concerns and suggestions via a mobile app, ensuring that management could address issues more quickly. After implementing these changes, the company saw a significant improvement in customer satisfaction. Checkout times were reduced, inventory shortages decreased, and customer service ratings improved. Laura and her team continued to monitor customer feedback through the mobile app and regularly adjusted store operations based on the data they collected. This proactive approach allowed the retail chain to regain customer trust and strengthen its market position. Effective technology upgrades, staff training, and proactive feedback management proved to be key components of the company's success in addressing customer concerns. Questions: What were the primary causes of customer dissatisfaction, and how did the management address these issues? How did technology and employee training contribute to improving the overall customer experience, and what long-term impact did this have on the company?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 6P

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