FINS Exercises Essay

QUESTION 4: Kai decides to add color and keep his price the same. This will increase variable costs by $0.40 per issue. What will be the new unit volume (copies per issue) required to maintain $500 profits and cover the increased fixed and variable costs?

The product will be sold at the store in Little Rock, Arkansas, focusing on the zip code 72212. Considering the small size of my city, the geographic segment will focus on those individuals that live in the suburban neighborhoods in the area. Most of the people in this area are millionaires in their mid-50s without children so they treat their pets like they would their children because they consider them an extension of their family. Since these individuals love their pets much like they would their family members they will spend a great deal of money on them to ensure they have the proper care and treatment. This will hold especially true when it comes to their pet food. From my personal experiences, wealthy individuals have a tendency to purchase the most expensive items on the shelves for the simple fact they think it is better than all the rest. Needless to say, they will not have an issue paying expensive prices for an all-natural pet

* If we surmise that the company’s specialist’s predictions of 4% on market growth along with renewing current and or adding more customer contracts then the profits should be as follows:

Assume that next year management wants the company to earn a minimum profit of $162,000. How many units be sold to meet this target profit figure? [3 points]

In our second assumption, instead of using the cost of goods per cases in 1986, we try to use the percentage it counts in the total expenses which is 50.4% and to find the sales needed to break-even. The detail of the calculation is shown in the answer for questions d. The result is that 95,635, a little bit higher than the estimated sales of 90,000.

13. Sunglass Hut purchases a pair of Tiffany sunglasses from a wholesaler for $180 and sells it for $300. If the wholesaler increases its price by 20%, to the nearest dollar, what should Sunglass Hut charge in order to maintain the same percent margin?

Are your assumptions about growth in unit sales realistic or over-optimistic? Using REALISTIC growth assumptions, what price per share do you get?)

Caninantics’s mission is to be the leader in introducing innovative, dog food dispensing product to the market. Through close customer contact and excellent relationships, Caninantics, will meet the needs of the customers. Caninantics, LLC, is a privately-held corporation and maintains an office and a small warehouse in a mixed-use area of North Beach. Three of the four investors in the company have full operational responsibility, the co-founders, have both entrepreneurial and industry experience to brings operational management, marketing, and financial skills

This segment usually does all of their own research, want good quality, long lasting products and usually purchase items at local pet stores or at the veterinarians office. 80% of the total cat owner markets are the owners that have owned their cat for some time and are well stocked with the maintenance supplies. They typically purchase their products at a variety of locations such as pet stores, the veterinarian’s office, household supply stores, and grocery stores. The remaining 15% are known as the gray zone where in which they have many pets and a variety of them, such as cats and dogs, which are free to roam outside. This segment is not typically concerned with purchasing specific products other than cat food. This product is positioned in the minds of consumers, as a part of being a cat owner, the most unpleasant chore one would have to do, so having this type of product available may be of some importance to them.

l. How much competition does the firm have? Is the competition powerful? List the firm and the competition’s current market share if given in the case.

2. a. Mr. Wayne has an idea that the gross margin may reduc to 27.5 % over the

The SNHU pet food store has been in business for over 15 years with 3 locations in Akron, OH. As a result of the tremendous growth of the company for the past five years, SNHU pet food decided to launch a new line of all natural, made-in-the-U.S.A. pet food. Responding to this demanding growth and increasing competition. The pet food will focus its marketing strategy for the small and medium size dogs, along with a line for felines. “Only Natural Pet Food” targets people with active lifestyle make it a great choice for the new line of pet food, this new line will appeal to individuals that have a healthier lifestyle and want to extend it to their pets.

The following SWOT Analysis ledger is for First in Show Pet Foods Inc., new frozen dog food product “Show Circuit”. It displays the Internal and External factors that will affect “Show Circuits” introduction to the pet food market.   Although “Show Circuit” will need to reshape its prospective target markets views on conventional dog food, it has a researched and proven formula that will provide an improvement in dogs’ coat shine. With the current market trend projecting an increase in dog food sales, the high production cost of “Show Circuit” will not be a strong external threat.   With a good media strategy, store positioning, a creative market introduction, “Show

D) What is the size of the company with respect to sales, assets, number of employees, other benchmarks?

Automotive Revenue: $1.06 billion on a non-GAAP basis, and is comprised of GAAP Automotive revenue of $893.3 million plus a net increase of $163.7 million in deferred revenue and other long-term liabilities as a result of lease accounting