Business Case Study

338 words - 2 pages

※ 繳交日期五月二十日下午五點前,逾期不計分

作業Ⅵ:

The Healthy Spring Water company sells bottled water for offices and homes. The price of the water is $20 per 10 gallon bottle and the company currently sells 2000 bottles per day.  Following is the company's income and costs on a daily basis.

Sales revenue $40,000
Incremental Variable cost $16,000
Nonincremental Fixed cost $20,000
[Note: you can assume that variable costs are constant so that the average of them is also the variable cost relevant for a ...view middle of the document...

1. What is the maximum sales loss (in % and units) that Healthy Spring could tolerate before a 20% price increase would fail to make a positive contribution to its profitability? (That is, what is the basic break-even sales change?)

2. By how much would Healthy Spring's contribution increase if its sales declined by 15% following the price increase?

3. In order for Healthy Spring to reposition itself as a premium water, management believes that it will have to upgrade the packaging of its product. The company will deliver the water in glass rather than plastic bottles and the bottles will be "safety sealed" to insure their cleanliness until the covering is removed in the customer's home. These changes will add $1.00 per bottle to the variable cost of sales.

4. To reposition its water as a premium product, Healthy Spring will require an increase in its advertising and promotion budget of $900 daily. What is the maximum sales loss that Healthy Spring could tolerate before a 20% price increase would fail to increase its net profit? (That is, what is the break-even sales change including the incremental fixed cost of the advertising campaign?)

Other assignments on Business Case Study

Strategy Success In Gourmet Fast Food

1297 words - 6 pages business before a few years ago. (Case study, Documen The main forces in the macro-environment facing the fast-food industry The food intake of the people of any country is related to cultural differences.(Mashhadi,A.H. 2012) In the macro-environment, cultural, demograhic and economic will be the main forces facing the fast-food industry. Especially for the global companies, in order to get more profit, understanding the local cultural, and

Westlake Lanes - Case Study

271 words - 2 pages Westlake Lanes - Case Study Introduction: Westlake Bowling Lanes is sixteen lanes, Ten-pin bowling alley located in Raleigh, North Carolina. It is currently being operated by Shelby Givens, but it originally belonged to her maternal grandfather Dane Sugar. Dane stared this business in the early 1970s. At that time the bowling alley had been profitable because it was the only bowling alley being constructed in Raleigh downtown. Dane

Mcdonald's Case

451 words - 2 pages meeting Case Study McDonald’s Worksheet 1- Introduction to McDonald’s p. 3 customers’ need to save time on meals Low prices Clean, hygienic; consistent food quality Comfortable restaurant environment; quality service; choices, etc. 3. McDonald’s needs to adapt to different cultures and conditions when it sets up business in different parts of the world. What problems might McDonald’s encounter when it opens outlets in

Hkicpa

309 words - 2 pages Taxation Workshop Outline and Learning Methodologies Session Methodologies Chapters covered Workshop 1 1. Introduction • • Presentation Group discussion 2. Profits tax • Group exercise 3. Negotiation • • Role play Group exercise 4. Tax for individuals • • Case study Group discussion 5. Reboot • • Presentation Group discussion 6. Tax cases / Anti-avoidance • Group discussion

Project Managment

288 words - 2 pages Managing Strategic Business Projects Case Study: Oilwell Cable Company A. Review Questions A.1. College of Business If Norm chooses to go ahead with the microprocessor conversion on the machinery without passing it by the team, what are the potential conflicts that might arise? What are the advantages of such a move? If Norm decides to put the decision to the appropriate production team, what are the potential problems? What would be the

Syllabus

3192 words - 13 pages Process,” in Ch. 4 of Business Research Methods. Find a case study of a research example in which a clear statement of the management dilemma leads to a precise and actionable research. Explain the management dilemma, the management question, and the research question(s). Answer the following questions: • Why did you consider the research to be actionable? • Was the business research process followed in its entirety? Individual

Management Article

728 words - 3 pages case study method and some use the combination of lecture and case study method to impart lessons in management education. The problem with case study methods is that students with little or no management are presented with a 20 page case study about a firm and asked to give their strategy on it the next day. This helps the students in talking business but it does not translate into learning business.

Adidas

365 words - 2 pages Case # 18 -- Adidas in 2008: Has Corporate Restructuring Increased Shareholder Value? Team and Individual Writing Assignment Please evaluate Adidas’ restructured line-up of sporting goods businesses. Your analysis should identify Adidas’ corporate strategy, evaluate the attractiveness of the industries it has diversified into and the strength of each of its business units, and assess the degree to which strategic fit and resource fit exists in

Ngs Case Study

538 words - 3 pages benefits of your company's solution.] Benefits [Summarize the business benefits that your company's solution provided for your customer. Focus on the quantifiable benefits, such as the dollar amount saved in training costs, the percentage increase in productivity, or the percentage increase in sales. Note that return-on-investment figures will greatly increase the impact of the case study. Identify any new capabilities and future plans that

Acct504 Case Study 1

332 words - 2 pages Case Study 1 (Part A) (Learning Objectives 4, 5, 6: Analyze the impact of business transactions on accounts; record (journalize and post) transactions in the books; construct and use a trial balance) During the first month of operation of Gordon Construction, Inc., completed the following transactions: June2 | Gordon received $55,000 cash and issued common stock to the stockholders. | 3 | Purchased supplies, $3,000, and equipment, $5,200

Business 210 Complete Course

309 words - 2 pages |3/17 |3/18 |3/19 |3/20 |3/21 |3/22 |3/23 | |BUS 210 | | | |Motivation and Teams Case Study CheckPoint Week 6 Knowledge Check | | |Job Fair Brochure | |Week 7 |3/24 |3/25 |3/26 |3/27 |3/28 |3/29 |3/30 | |BUS 210 | |DQ 1 | |DQ 2 Week 7 Knowledge Check |The Impact of HRM CheckPoint | | | |Week 8 |3/31 |4/1 |4/2 |4/3 |4/4 |4/5 |4/6 | |BUS 210 | | |IT Applications Presentation CheckPoint |Week 8 Knowledge Check |Hardware/ Software Components

Similar Documents

Urban Outfitters Continuing Case Study 4 Marketing A Business

1144 words - 5 pages Urban Outfitters Continuing Case Study 4 Marketing a Business Felicia Lee Introduction to Business BUS 100 May 30, 2011 Abstract Marketing is a process which a company draws potential consumers/customers’ interest towards its goods and services. This process involves activities such as research, promotion

How To Write A Case Study

470 words - 2 pages corporate level strategy for your case study analysis, you will need to identify and evaluate the company’s mission, goals, and corporate strategy. Analyze the company’s line of business and its subsidiaries and acquisitions. You will also want to debate the pros and cons of the company strategy. 6. Identify Business Level Strategy. Thus far, your case study analysis has identified the company’s corporate level strategy. To perform a complete

Papl Essay

669 words - 3 pages used qualitative research designs and quantitative research designs. Select the appropriate type of research design in a given business situation. Materials Week Three Student Guide Understanding Business Research Terms and Concepts: Part 1 Mastering Teacher Leadership Case Study Starbucks, Bank One, and Visa Launch Starbucks Duetto Visa Case Study Yahoo Consumer Direct Marries Purchase Metrics to Banner Ads Case Study EBOOK COLLECTION

Case Studies Essay

657 words - 3 pages should promote its products. * Ensure transparency in business operations. SWOT analysis Strengths * Availability of resources for the companies * Existence of labor force Weaknesses * Inadequate cash * Bankruptcy Opportunities * Product innovations * Global markets Threats * Competition * Poor economy Karen Hughes Stumbles Selling Uncle Sam In this case study, Karen Hughes retired from her job of