Calculate the expected impact of the drop in sales

Assignment Help Accounting Basics

Reference no: EM131949497

Question: (i) Using Excel prepare a ‘before and after' budget comparative analysis of the revenues and costs of the Empire Group's Star Wars Electronic Toothbrush product line. The analysis should incorporate the 30% predicted sales increase and the added $0.80 per unit Marketing Rebate. Ensure you include in your analysis any impact of the budgeted production increase on other per unit manufacturing and logistics costs.

(ii) Allowing for the change in sales volumes use Excel to calculate the expected impact of the drop in sales on the per unit product costs on our competitor Death Star Manufacturing.

It can be assumed that the 90% Fixed to 10% Variable manufacturing and logistic cost break-down will hold consistently across the industry (including for competitor Death Star Manufacturing). Assume that 75% of the predicted unit sales increase of the Star Wars Electronic Toothbrush will be made at the expense of the unit sales of their main competitor Death Star Manufacturing (meaning Death Star Manufacturing unit sales will fall by 75% of the Star Wars Electronic Toothbrush sales increase). Assume that the Empire Group and Death Star Manufacturing have identical manufacturing and logistics cost structures at the commencement of the 2018 calendar year.

(iii) Prepare a brief report (maximum 300 words) for the Strategic Management Committee outlining the key points of your findings. Include some discussion on:

a. the likely impact of the changes on the cost and profit structure of Star Wars Electronic Toothbrush (derived from your answer to (i)).

b. the likely impact of the changes on the cost and profit structure of Death Star Manufacturing (derived from your answer to (ii)).

c. make a recommendation to the Committee on whether to go ahead with the planned changes. Include any other strategic advice that you consider relevant to the Committee's decision making (for example profitability for supermarkets).

(Please ensure that your answer adequately addresses ALL of the points above)

Information related to above question is enclosed below:

Attachment:- Q5.rar

Reference no: EM131949497

Questions Cloud

Provide an example of two policies that address similar need : Provide an example of two policies that address similar needs, passed at two levels of government (i.e., federal, state, or local).

What are some various types of employee compensation : What are some various types of employee compensation and their relationship to job performance and evaluation?

Explain the differences between job evaluation and job analy : Explain the differences between job evaluation and job analysis, and compare different job evaluation techniques, selecting one that you favor.

Analyze the reporting mechanism in your state : Analyze the reporting mechanism in your state and nurse responsibilities related to the reporting of suspected child abuse.

Calculate the expected impact of the drop in sales : Allowing for the change in sales volumes use Excel to calculate the expected impact of the drop in sales on the per unit product costs on our competitor Death.

Explain environmental and health issues in school-aged child : What correlations did your research show between environmental and health issues in the school-aged child? Make sure to include references to the article(s) you

Develop a flowchart diagram using shapes and arrows : Develop a flowchart diagram using shapes and arrows of a stepwise process to reading a research study. Describe how you will identify the research problem.

Prepare the journal entries to record contract modification : Assume the blouses are delivered evenly on September 1 and October 1, 2017. Prepare the journal entries for September and October to record this contract.

Address how well the authors used theory to guide research : Address how well the authors used theory to guide the research. Were relational statements from the theory used to develop the hypotheses being tested?

User Account

All Pages