i-Qua group is a drinking water factory in US. As the business progresses, demand is increasing in Texas, Chicago and New York. And the company owner plans to build a factory so that customer needs in the area can be met without having to send from the main factory. Some of the considerations for decision making can be seen based on the data below: Cost/box Location Fixed Cost/Year ($) Material ($) Labor ($) Overhead ($) Texas 200.000 0,10 0,40 0,5 Chicago 180.000 0,25 0,75 0,5 New York 170.000 0,5 1,00 1,00 a. How much is the annual sales volume (box) for each area to be able to compete on a competitive advantage strategy with competitors? b. What do you suggest to the company based on the cost data above for the location of its factory construction? Explain why and use the calculation data so that decision making can be in accordance with the company strategy that you have learned.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
i-Qua group is a drinking water factory in US. As the business progresses, demand is increasing in Texas, Chicago and New York. And the company owner plans to build a factory so that customer needs in the area can be met without having to send from the main factory. Some of the considerations for decision making can be seen based on the data below:
| Cost/box | ||||
| Location |
Fixed Cost/Year ($) |
Material ($) | Labor ($) | Overhead ($) |
| Texas | 200.000 | 0,10 | 0,40 | 0,5 |
| Chicago | 180.000 | 0,25 | 0,75 | 0,5 |
| New York | 170.000 | 0,5 | 1,00 | 1,00 |
a. How much is the annual sales volume (box) for each area to be able to compete on a competitive advantage strategy with competitors?
b. What do you suggest to the company based on the cost data above for the location of its factory construction? Explain why and use the calculation data so that decision making can be in accordance with the company strategy that you have learned.
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