Assignment 2 Example | Topics and Well Written Essays - 500 words - 2

2 - Assignment Example In the current methodology of commissions for the front-line salesmen, the annual break-even point in dollar sales and in unit sales for Shop 48 is sales of 12,500 pair of shoes for gross sales of $375,000. Appendix 1 shows a graph from zero to seventeen thousand units sold in a given year, with both fixed and variable expenses taken into account. Based upon projected annual sales of 17,000 pairs of shoes, potential profit for Shop 48 would be $54,000 on annual sales of $510,000. Another question raised was what the profit or loss would be on 12,000 pairs yearly. After expenses, the store would realize a net loss of $6,000. In the next circumstance, the company is toying with the idea of offering the store manager of Shop 48 an incentive commission of $0.75 (seventy-five cents) per pair of shoes, leaving the salespersons’ commission intact. What would this added commission have on the break-even point in dollar sales and in unit sales? It is clearly shown that the break even point would indeed rise considerably. Technically there would be no â€Å"break even point†, for at 13,333 pairs the shop would be operating at a loss of $3.75 and one more pair (13,334) would give them a net profit of $7.50. Either way, sales would have to be roughly $400,000 per annum to achieve a profit, or an increase of $25,000 in gross sales annually. As an another option to the situation above, what if the store manager was given fifty cents commission on each pair of shoes sold beyond the break-even point? Their question on this was what the shops net operating income would be based upon 15,000 pairs of shoes sold annually. This would include the data as discussed for current operations in that 12,500 pair of shoes for gross sales of $375,000 is the BE point. With this, 15,000 pairs of shoes would give the store gross sales of $450,000 annually. With the added expense of the fifty cent commission on 2,500 pairs net profit would then be

Implementing Strategy Assignment Example | Topics and Well Written Essays - 500 words - 1

Implementing Strategy - Assignment Example That is also evident in the stock price after round eight in which Baldwin had $166.47, second after Digby’s 320.07 that was the best performance. As a business that values improvement in its products, we invested in research and development. The following represents the implementation strategy for research and development during the first four rounds of competition. For round 0, R&D was $0 for all the five products. That remained similar for the Baker and Bead products in round 1. However, Bid, Bold and Buddy products had $886, $ 778 and $ 892 in R&D, respectively, during round 1. During round 2, Baldwin spent $140 on R&D for Baker, $40 for Bead and $1000 for each Bid, Bold and Buddy. During round 3, R& D were $854 for Baker, $0 for Bead, $274 for Bid, $161 for Bold, $20 for Buddy and $952 for Bobo products. For round 4, R& D were $0 for Baker and Bead, $874 for Bid, $ 842 for Buddy and $820 for Bobo. In round 5, R& D will be $0 for Baker, $0 for Bead, $989 for Bid, $864 for Bold, $849 for Buddy and Ǚ for Bobo. In essence, research and development after the introduction of Bobo was higher. After all the eight rounds of co mpetition, product improvement was achievable due to high investment in research and development. Based on the financial historical summaries for Baldwin, the following were the financial performances. As the Baldwin team, the net income increased steadily throughout the eight rounds. Round one performance was $1, 061, 000 while round eight performance was $40, 427, 000. The cash flow from operations varied during the eight rounds. While, round one was $3,282, 000, round four was $1, 628, 000, round five was $34, 236, 000 and round eight was $ 47, 774, 000. Baldwin great performance in profitability after the eight rounds of competition. It had $ 40,427,031 in profit. Because of its exceptional marketing strategies, Baldwin realized 11.27% in traditional segment share after the eight rounds of competition. That was third