SNIGDHA GINNA
JONES BLAIR CASE ANALYSIS
STRENGTHS
1. According to me the biggest strength for Jones Blair is their high quality of products, as they have been in the industry for a very long time and have invested a decent amount into research and development work. This coupled with knowledgeable and experienced sales representatives who are helpful and well liked by the customer’s adds to be their strength. They also sell their products to both Professional painters and DIY markets.
WEAKNESS
One of the biggest weaknesses for Jones Blair in the market is that they are not competitively priced in comparison to their competitors. Jones Blair is in fact the highest prized paints in the market. This could be a big disadvantage
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So it has a very limited opportunity to grow in that segment.
3.
Suggestion 1.To spend a 300,000 TV brand image advertising campaign split between DFW and non DFW areas.
Current Contribution Margin: 35% or 0.35
The amount of extra sales that would be required to cover this cost of 300,000 would be
$300,000/0.35=$8571428.57
Jones Blair will have to increase its market share significantly to compensate for this additional cost.
Suggestion 2
20% price cut
Contribution Margin: 35%
20% price cut will reduce the contribution margin to 15% or 0.35
Calculation
Currently Gross margin is 12m*0.35=4.2m
In order to maintain this Gross margin,
(12m+x)*0.15=4.2m
X=16
Therefore required sales is $28 million.
Suggestion 3:
To invest $300,000 in in store advertising, merchandising and sales support.
Calculation:
Current Contribution Margin: 35% or 0.35
The amount of extra sales that would be required to cover this cost of 300,000 would be
$300,000/0.35=$8571428.57
I would suggest the third option to increase their in store advertising ,merchandising and sales support because a 20% price cut would require an additional sales on 28 million to maintain the $4.2 million. This strategy would be rather difficult for the company as they spend a lot of money on research and fine quality of products.
Using this
Todd Wates, now 28 years old, has been treated for Cystic Fibrosis (CF) since he was eight years old. He currently resides with his mother Sarah, and father Anthony, in a two-bedroom apartment close to the hospital where he receives treatment.
Total contribution needed to cover the old fixed costs + new fixed cost + profit is just the three factors added together.
Total Sales Dollars (for covering each incremental dollar of advertising) = $200,000 / $150,000 = $1.33
1. For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units?
One of the strengths that the company has is its good quality brand and product. Their products are light and travel friendly as they are folding bikes making them very unique and popular with people who commute a great deal. This leads to the next strength which is the company’s wide target market. People who tend to commute daily to work or university, who have caravans and boats
You discover that a product sale was made and recorded in December for $128,600; the product had not yet been shipped. The cost
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managed effectively in one way or another, that is $1.8 billion in merchandise. If half of these customers choose
The total amount that Kelsey and Cody will finance with the additional purchases will be $2773.
The total amount of the costs which should be matched with Revenues for 2003 is $71,129. This is done by taking the capitalization amount shown above (217,520), dividing it by the 200,000 unit estimate, and multiplying it by the units that were sold in 2003. The calculation is shown below.
In addition ; Break-even revenue with mortgage financing. If the breakeven sales were achieved, depreciation of $320,000 will not require a cash outflow and will cover the principal repayment of $180 , $160 for the furnishings and $49,000 for the mortgage in the first year.
Since the paint market has shown that consumers are price sensitive, cutting our price by 20 percent should in fact drive up sales. Perhaps we can achieve a larger market share if more people are drawn to our higher quality product, which is now at the similar price of the rest.
* Refer sheet “25000 Sales” for cost incurred and Gain/loss for AIFS for different scenarios and actual sales volume of 25000.
In this case, you will be able to cover all of your fixed costs only by changing of sales mix, without changing the prices. Please keep in mind that you have some more variable operating costs, not covered by this calculation (see Table on p. 2). They can amount to more than $1,000, if you add depreciation for equipment and truck.
After close review and careful analysis of the case of Andrea Yates and the circumstances which led to the drowning death and murder of her five children, I first would like to state my personal opinion on the conclusion of the case which was the majority consensus at the time of her trial and sentencing. She was guilty of a horrible murder and although certainly had mental problems, which is apparent by her actions that most completely rational thinking human being and mother would be incapable of committing, and expertly