In current business publications, find examples of firms whose strategies to increase profits focus primarily on generating more revenue. Compare these cases with firms that are trying to cut costs to increase profits. In your initial post, include a summary of these firms and how the different strategies have been successful or unsuccessful.
Having a nice size profit margin is the goal for most companies. In order to make this happen there has to be a plan/strategy that is carefully thought out and implemented. You want to take your time and make sure things are done correctly and in a way that it is profitable and not detrimental to your company at the same time. One good example of this act comes from McDonalds. One McDonalds franchise in New York increased the price of their Big Mac from $5.98 to $6.28 currently to increase revenue. Prior to this there was an anual increase that took place. "The Golden Arches' pricing in the U.S. Rose 2% year over year in the first quarter, which was still less than the consumer Price Index's overall".
On the other end of the spectrum we have companies like Apple. Apple fired 1,600 full time employees from retail stores to increase their profit margin. "The retail segment reported operating income of $308 million during the second quarter of 2009 down from #334 million....". In cutting down on those full time positions they were able to increase their profits by paying less full time salaries to employees. "Revenue increase 8.7% to 8.16 Billion, which is more than 7.96 billion expected...". I do not feel that this is the best way to go about getting results. A merger of the two would be effective. Gradually increasing sales prices and not eliminating so many positions at once or merging positions even would be effective. You have to take into account that less employees mean more work for the workers that are left, which could leave them in a stressful work environment. In turn could mean customer service quality decreases drastically. Things have to be looked at on both sides of the spectrum.

Answers

Answer 1

Answer:

Following are the responses to these question.

Explanation:

The goal of most businesses is to achieve the optimum gross profit. Moreover, to achieve this, a well-designed plan or plan deserves to be placed in place. The management needs to ensure that things are done properly and so that they are successful at the same period and therefore do not harm the business. That fast-food giant Mcdonald's is a good example of this. One of McDonald's' franchises in York City recently increased its Big Mac sales from $5,98 to $6,28. Before all this, Macdonalds would have an annual boost.

"During first 4th quarter, the price of Eiffel Tower in the U.s. Increased two percent year on year was still less than price index"

They need businesses like Apple at another end of the continuum. Apple also fired 1,600 filled retail employees to increase its gross profit. "Operating revenue inside the second quarter of 2009 were down $308 million to $334 million...." We were able to boost their earnings by cutting such full-time jobs. "To 8.16 billion u.s. dollars, which is over 7.96 percent estimated, the economy increased by 8.7%.

It doesn't seem to be the right way of achieving performance. It'd be effective to mix the two. Gradual sale rates are an optimal option, not cutting too many roles at once or combination. It is borne in mind that a decrease in the number of jobs is much more work to left workers who can keep them in a demanding working environment. This could mean a dramatic decline in customer support efficiency. Stuff on all sides of the spectrum must be looked at.


Related Questions

The Varone Company makes a single product called a Hom. The company has the capacity to produce 40,000 Homs per year. Per unit costs to produce and sell one Hom at that activity level are: Direct materials $20 Direct labor $10 Variable manufacturing overhead $5 Fixed manufacturing overhead $7 Variable selling expense $8 Fixed selling expense $2 The regular selling price for one Hom is $60. A special order has been received at Varone from the Fairview Company to purchase 8,000 Homs next year at 15% off the regular selling price. If this special order were accepted, the variable selling expense would be reduced by 25%. However, Varone would have to purchase a specialized machine to engrave the Fairview name on each Hom in the special order. This machine would cost $10,800 and it would have no use after the special order was filled. The total fixed costs, both manufacturing and selling, are constant within the relevant range of 30,000 to 40,000 Homs per year. Assume direct labor is a variable cost. If Varone has an opportunity to sell 37,960 Homs next year through regular channels and the special order is accepted for 20% off the regular selling price, the effect on net operating income next year due to accepting this order would be:________
a. $33,320 decrease
b. $35,480 decrease
c. $33,320 increase
d. $35,480 increase

Answers

Answer:

$69,200 Increase

Explanation:

Calculation to determine what the effect on net operating income next year due to accepting this order would be:

Incremental revenue $408,000

(8,000 units × $51 per unit)

[$60 × (1 − 15%) = $51]

Less incremental costs:

Direct materials $160,000

(8,000 units × $20 per unit)

Direct labor $80,000

(8,000 unit × $10 per unit)

Variable manufacturing overhead $40,000

(8,000 units × $5per unit)

Variable selling expense $48,000

[$8 × (1 − 25%) = $6]

(8,000 units × $6 per unit)

Special machine $10,800

Total incremental cost $338,800

Incremental net operating income$69,200

($408,000-$338,800)

Therefore the effect on net operating income next year due to accepting this order would be:

$69,200 Increase

The Aleander Company plans to issue $10,000,000 of 20-year bonds at par next June, with semiannual interest payments. The company's current cost of debt is 10 percent. However, the firm's financial manager is concerned that interest rates will increase in coming months, and has decided to take a short position in U. S. government t-bond futures. See the settlement data below for t-bond futures. (Note: One standard futures contract is $100,000).
a. Calculate the present value of the corporate bonds if rates increase by 2 percentage points.
b. Calculate the gain or loss on the corporate bond position.
c. Calculate the number of contracts required to cover the bond position. Then calculate the current value of the futures position.
d. Calculate the implied interest rate based on the current value of the futures position.
e. Interest rates increase as expected, by 2 percentage points. Calculate the present value of the futures position based on the rate calculated above plus the 2 points.
f. Calculate the gain or loss on the futures position.
g. Calculate the overall net gain or loss.
h. Is this problem an example of a perfect hedge or a cross hedge? Is it an example of speculation or hedging? Why?
Delivery Month Open High Low Settle Change Open Interest
(1) (2) (3) (4) (5) (6) (7)
Dec 103'14 103'14 102'11 102'17 -6 678,000
Mar 102'11 102'23 100'28 101'01 -5 135,855
June 101'14 101'26 100'02 100'12 -5 17,255

Answers

I have tried to explain it in extremely simple words and kept it precise too. I have made an excel file and compiled the answer in that clearly. All the parts are clearly mentioned. Please download the document and understand clearly. All the parts are solved independantly. Please find the attached file. Thanks.

home trade helps in proper utilization of local resources how​

Answers

1. Higher trade volumes

2. Greater opportunities to capitalize on comparative advantages

3. More efficient use of raw materials

4. Stronger economic growth

Revenue and expense data for Bluestem Company are as follows:

Year 2 Year 1
Administrative expenses $37,720 $20,300
Cost of goods sold 360,000 319,900
Income tax 41,000 32,200
Sales 820,000 700,000
Selling expenses 154,160 109,900

Required:
Prepare a comparative income statement, with vertical analysis, stating each item for both years as a percent of sales.

Answers

Answer and Explanation:

The preparation of a comparitive income statement, with vertical analysis, stating each item for both years as a percent of sales is prepared below with the help of the attached spreadsheet:-

The formula that we have used is shown below:-

Gross profit percent = Gross profit / Sales revenue

Cost of goods sold percent = Cost of goods sold / Sales revenue

and in a similar way operating expenses items.

Property that a business uses to secure a loan is

Answers

Answer:

Business loans are usually secured with collateral, which is an asset pledged to the lender by the borrower for the life of the loan. The collateral can be seized and sold to repay the loan if the borrower defaults. Lenders use collateral to reduce the risk of losing money on the loan.

Explanation:

Dennis sells short 100 shares of ARC stock at $152 per share on January 15, 2020. He buys 200 shares of ARC stock on April 1, 2020, at $190 per share. On May 2, 2020, he closes the short sale by delivering 100 of the shares purchased on April 1
a. What are the amount and nature of Dennis’s loss upon closing the short sale?
b. When does the holding period for the remaining 100 shares begin?
c. If Dennis sells (at $27 per share) the remaining 100 shares on January 20, 2017, what will be the nature of his gain or loss?

Answers

Answer: See explanation

Explanation:

a. What are the amount and nature of Dennis’s loss upon closing the short sale?

Sales consideration = $100 × $152 = $15200

Less: Closing Value of Short sales = 100 × $190 = $19000

Short term capital loss = $3800

b. When does the holding period for the remaining 100 shares begin?

The holding period for the remaining 100 shares begin on May 2, 2020, which was when the short sale was closed.

c. If Dennis sells (at $27 per share) the remaining 100 shares on January 20, 2017, what will be the nature of his gain or loss?

Sales consideration = 100 × $27 = $2700

Less: Base value = $19000

Short term capital loss = $16300

A 15-year maturity bond with par value of $1,000 makes annual coupon payments at a coupon rate of 10%. Find the bond equivalent and effective annual yield to maturity of the bond for the following bond prices.
List Bond Equivalent Annual Effective annual
bond prices Yield to maturity Yield to maturity
a $940 % %
b $1,000 % %
c $1,040 % %

Answers

Answer:

A. Bond equivalent 10.82%

Effective annual yield to maturity of the bond 11.11%

B. Bond equivalent 10%

Effective annual yield to maturity of the bond 10.25%

C. Bond equivalent 9.49%

Effective annual yield to maturity of the bond 9.73%

Explanation:

A. Calculation to Find the bond equivalent

We would determine the yield to maturity on a semi-annual basis using Financial Calculator which is:

N = 10*2 = 30

PV = -940

PMT = [10%/2]*1000 = 50

FV = 1000

Press CPT, then I/Y, which gives us 5.41%

Bond equivalent yield to maturity=5.41% × 2

Bond equivalent yield to maturity= 10.82%

Calculation to determine the Effective Annual Yield To Maturity of the bond

Effective annual yield to maturity = (1+.0541)^2– 1

Effective annual yield to maturity = (1.0541)^2– 1

Effective annual yield to maturity =1.1111 – 1

Effective annual yield to maturity = 0.1111 *100

Effective annual yield to maturity = 11.11%

Therefore the bond equivalent and effective annual yield to maturity of the bond will be:

Bond equivalent 10.82%

Effective annual yield to maturity of the bond 11.11%

b. Calculation to determine the bond equivalent

Based on the information given the bond is selling at par which therefore means that the yield to maturity on a semi annual basis will be the same as the semi annual coupon 5%.

Bond equivalent yield to maturity =5%*2

Bond equivalent yield to maturity= 10%.

Calculation to determine Effective annual yield to maturity

Effective annual yield to maturity = (1+.05)^2– 1

Effective annual yield to maturity = (1.05)^2– 1

Effective annual yield to maturity=1.1025-1

Effective annual yield to maturity=.1025*100

Effective annual yield to maturity =10.25%

Therefore the bond equivalent and effective annual yield to maturity of the bond will be:

Bond equivalent 10%

Effective annual yield to maturity of the bond 10.25%

c.Calculation to determine the bond equivalent

N = 10*2 = 30

PV = -1,040

PMT = [10%/2]*1000 = 50

FV = 1000

Bond equivalent yield to maturity=9.49%, or 4.75% on a semi-annual basis.

Calculation to determine the Effective Annual Yield To Maturity of the bond

Effective annual yield to maturity = (1+.0475)^2– 1

Effective annual yield to maturity = (1.0475)^2– 1

Effective annual yield to maturity =1.0973– 1

Effective annual yield to maturity = 0.0973*100

Effective annual yield to maturity = 9.73%

Therefore the bond equivalent and effective annual yield to maturity of the bond will be:

Bond equivalent 9.49%

Effective annual yield to maturity of the bond 9.73%

On May 13, 2020, Otto, Parker and Quentin bought a parcel of land as tenants in common. The deed provided that Otto owned 1/2 the property and Parker and Quentin each owned 1/4 each. If Quentin dies, the property will be divided as follows:

a. Otto 1/2. Parker 1/2
b. Otto 5/8, Parker 3/8
c. Otto 1/3, Parker 1/3, Quentin's heirs 1/3
d. Otto 1/2. Parker 1/4, Quentin's heirs 1/4

Answers

Answer:D. Otto 1/2. Parker 1/4, Quentin's heirs 1/4

Explanation:

Based on the information given in the question, if Quentin dies, the property will be divided as Otto 1/2. Parker 1/4, Quentin's heirs 1/4.

When a tenant in common dies, it should be noted that their share of a property will be passed to their legal heir and thesame percentage of ownership will be shared by the co-owners. Hence the correct option is D

Money is neutral in:___________
A. the short run, since it cannot alter the real aggregate output or price level in the short run.
B. both the short and long run, since it cannot alter price levels or aggregate output in the long and short run.
C. the long run, since it only affects the price level, but not aggregate output or interest rates.
D. the short run, since it cannot alter the price levels or interest rate in the short run.

Answers

Answer:

C

Explanation:

Money neutrality is a theory which submits that money supply only affect nominal variable and not real variables.

Nominal variables include price, wages and exchange rate

real variables include employment and real GDP

Money is only neutral in the long run and not in the short run because of money illusion. Money illusion causes economic agents to respond to money supply changes.

Money is neutral only in the long run

Nordstrom, Inc. operates department stores in numerous states. Suppose selected financial statement data (in millions) for 2020 are presented below.

End of Year Beginning of Year
Cash and cash equivalents $750 $81
Accounts receivable (net) 2,060 1,810
Inventory 880 830
Other current assets 570 429
Total current assets $4,260 $3,150
Total current liabilities $2,060 $1,610

For the year, net credit sales were $8,258 million, cost of goods sold was $5,328 million, and net cash provided by operating activities was $1,251 million.

Required:
Compute the current ratio, current cash debt coverage, accounts receivable turnover, average collection period, inventory turnover, and days in inventory at the end of the current year.

Answers

Answer:

Nordstrom, Inc.

Current Ratio = Current assets/Current liabilities

= $4,260/ $2,060  

= 2.1

Current cash debt coverage = Net Operating Cash/Current liabilities

= $1,251/$2,060

= 0.61

Accounts receivable turnover = Net Sales/Average Receivable

= $8,258/$1,935

= 4.27

Average collection period = 365/4.27

= 85.5 days

Inventory turnover = Cost of goods sold/Average inventory

= $5,328/$855

= 6.2 times

Days in inventory = 365/Inventory turnover

= 58.9 days

Explanation:

a) Data and Calculations:

                                         End of Year     Beginning of Year

Cash and cash equivalents   $750                       $81

Accounts receivable (net)     2,060                    1,810

Inventory                                   880                      830

Other current assets                570                     429

Total current assets            $4,260                 $3,150

Total current liabilities        $2,060                  $1,610

Net credit sales = $8,258 million

Cost of goods sold = $5,328 million

Net operating cash = $1,251 million

Average receivables = $1,935 ($2,060 + $1,810)/2

Average inventory = $855 ($880 + $830)/2

Nontariff barriers are: _________

a. numerical limitations on the quantity of products that a country can import
b. rules, regulations, inspections, and paperwork which make it more costly or difficult to import products
c. taxes levied on the value of imported goods
d. all of the above

Answers

Answer:

The correct answer is the option D: All of the above. T

Explanation:

To begin with, the term known as "Non-Tariff Barriers" in the field of economics and business management refers to the barriers imposed by the government to the trade of imports and exports of goods and services in a country with the main difference that they use other mechanism rather than the commonly imposition of tariffs. Therefore that this tool can refer to rules, regulations or numerical limitations and many other impositions. That is why that it consists of any obstacle to international trade.

Ever since e-commerce started rising in prominence, the value of the retail showroom has diminished significantly. After all, consumers no longer need to visit a store to see what types of products are available for purchase. Not only does a quick search on Amazon accomplish this goal within seconds, but the site also provides helpful resources such as customer reviews and recommendations. Nevertheless, the online retail model doesn't work the same way for all products. Consumers on the whole still visit showrooms when they're looking to buy big expensive items like cars or mattresses.

Thanks to a new wave of startups, however, online retailers are beginning to break through these barriers of size and expense. While many consumers remain reluctant to purchase a car without driving it, online mattress sellers like Casper and Leesa Sleep are winning over thousands with a streamlined approach. Customers simply select the size they want, pay for it, and then wait for the mattress to arrive at their doorstep compressed into a single box. Most showrooms contain a variety of mattresses that can greatly fluctuate in price depending on what sales are happening at the moment. Customers then learn all these intricate details from assertive salespeople on the hunt for a commission.

Today's online mattress sellers cut out this rigmarole by using simplified inventory and fixed prices. But that doesn't necessarily mean these brands provide customers with the best deal possible. For instance, a king from Casper costs $950, not exactly a bargain for a foam mattress. In fact, customers could likely get a better deal if they were simply willing to do some haggling at a showroom. For Casper's customers, though, the company's appeal lies in its convenience rather than its value. There's also little risk in trying out a compressed mattress: Casper offers free shipping, 100-day guarantees and free returns on all of their products. While it remains to be seen if these upstarts can take on the $14 billion U.S. mattress industry, Casper's $100 million in sales during its first year of operation suggests that they're certainly on the right track.

Requried:
a. Intermediaries can be eliminated, but their activities cannot. Describe the activities provided by retail showrooms that manufacturers like Leesa and Casper are now providing. Specifically, what utility are the manufacturers providing?
b. Would you ever purchase a car or an expensive refrigerator direct from the manufacturer without seeing the product in person or testing the product? Explain why or why not. If not, what would you need from the manufacturer in order to purchase direct from them?

Answers

Explanation:

a. Formerly, these manufacturers have to provide storage space to display their inventory of mattresses, however, online retail sellers have taken up this activity by holding the various sizes of the available inventory, and then simply display them on photos/videos on their website.

b. No. The decision to purchase a car direct from the manufacturer without seeing the product in person or testing the product isn't the most preferred option for many, however, an expensive refrigerator could be purchased without seeing or testing it out. Usually, the following factors are considered:

Would this product match the description stated?Would the cost of return be worth it if there happens to be a problem with the product?

Splish Brothers Inc. gathered the following reconciling information in preparing its August bank reconciliation:______.
Cash balance per books, 8/31 $33600 Deposits in transit 1400 Notes receivable and interest collected by bank 8200 Bank charge for check printing 190 Outstanding checks 19200 NSF check 1630
The adjusted cash balance per books on August 31 is:_______.
a. $38580.
b. $22040.
c. $23580
d. $39980.

Answers

Answer:

d. $39,980

Explanation:

Given the above information, the adjusted cash balance per books on August 31

= Cash opening + Collection by bank - Bank charge check printing - NSF check

The next step is to fix in the values as given above.

= $33,600 + $8,200 - $190 - $1,630

= $39,980

Therefore, the adjusted cash balance per books on August 31 is $39,980

There are three equally-sized distinct subpopulations in Utopolis: unemployed, workers, and retirees. There are four possible social states which result in different utility levels for the three subpopulations:

Social State Unemployed Workers Retirees
A 12 50 10
B 20 20 20
C 15 15 15
D 1 40 1

a. Which social states might plausibly be chosen by the government of Utopolis? And Why?
b. There is a government election in Utopolis with two candidates: a Rawlsian and a Utilitarian candidate. Each candidate promises to enact one of the social states above. If the majority of citizens elect the candidate, which social state will be enacted?

Answers

Answer:

Utopolis

a. Social states chosen by the government of Utopolis are:

Social State  Unemployed  Workers  Retirees

A                              12             50              10

D                               1              40                1

The reason for choosing these social states is that the social states of A and D reduce the headache felt by the government in managing unemployment and paying pensions to retirees, unlike the social states of B and C, which have equal numbers of the distinct subpopulations.

b. The enacted social state will be D.  This is the social state preferred by the majority of citizens.  There is a utopian economic condition achieved with social state D unlike with other social states.

Explanation:

a) Data and Calculations:

Utility levels in Utopolis:

Social State  Unemployed  Workers  Retirees

A                              12             50              10

B                             20             20             20

C                             15              15              15

D                               1             40                1

Kenji and Lucia are building their portfolios. Kenji purchases shares in a mutual fund and pays fees to a manager who actively manages the mutual fund's portfolio. He does so because he believes that the manager can identify inexpensive stocks that will rise in value. Lucia is not convinced. She buys shares in an index fund—a type of mutual fund that simply buys all of the stocks in a given stock index rather than actively managing a portfolio.

Kenji builds his portfolio on the supposition that:________

a. Stock analysts can use fundamental analysis to identify undervalued stocks.
b. Stock prices follow a random walk
c. The stock market exhibits informational efficiency.

Answers

Answer:

a. Stock analysts can use fundamental analysis to identify undervalued stocks.

Explanation:

Since in the question it is mentioned that he would trust the manager that it could identify the inexpensive stock that would increase the value  but on the other side lucia not convinced, so she purchased the shares

So the kenji create his portfolio based on that the stock analyst would applied the fundamental analysis in order to analyze the undervalue of the stock

hence, the option a is correct

Answer:

Kenji and Lucia are building their portfolios. Kenji purchases shares in a mutual fund and pays fees to a manager who actively manages the mutual fund's portfolio. He does so because he believes that the manager can identify inexpensive stocks that will rise in value. Lucia is not convinced. She buys shares in an index fund—a type of mutual fund that simply buys all of the stocks in a given stock index rather than actively managing a portfolio.

Kenji builds his portfolio on the supposition that:________

A. Stock analysts can use fundamental analysis to identify undervalued stocks.

B. Stock prices follow a random walk

C. The stock market exhibits informational efficiency.

-KeonLee

I hope it help

#Carry on learning

The following data are taken from the financial statements of Bar Harbor Company:
2017 2016
Average accounts receivable $530,000 $550,000
Net sales on account 5,800,000 5,200,000
Terms for all sales are 2/10, n/30
a) Compute the accounts receivable for both years.
b) Compute the average collection period for both years.

Answers

Answer:

a. Accounts receivable turnover = Net sales on account/Average accounts receivable

2017

Accounts receivable turnover = $5,800,000/$530,000

Accounts receivable turnover = 10.94

2016

Accounts receivable turnover = $5,200,000 / $550,000

Accounts receivable turnover = 9.45

b. Average collection period = 365 days/Accounts receivable turnover

2017

Average collection period = 365/10.94

Average collection period = 33 days

2016

Average collection period = 365/9.45

Average collection period = 39 days

What are the requirements for something to be used as money?

Answers

For it to have international value
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