Gross profit margin

Group Case ALPES S.A.: A Joint Proposal Table of Contents Topic Page Problem Identification 1 External Analysis 1 Internal Analysis 3 Financial Analysis 5 Alternatives 5 Decision Criteria 6 Evaluation of Alternatives 6 Recommendation 6 Action Plan 7 Contingency Plan 7 Appendix 8 Key Problem Identification: The main issue in this case surrounds Dennis Shaughnessy, senior vice-president for Corporate Development and general counsel for Charles River Laboratories (CRL)

promotion expenses, sales, general, and administrative costs jointly create a larger expense than profits will generate in the first year. Advertising for this option is regulated by the supermarkets; they require quarterly trade promotions and an extensive advertising plan. However, when looking in the future this option can potentially be the most profitable, exceeding $11 million in net profit value in five years. [Figure 1]

profitability analysis: manufacturer 1 Customer profitability analysis: Sales revenue Cost of goods sold Gross margin Selling and administrative costs: General selling costs General administrative costs Customer-related costs: Sales activity (8,6 x $1000) Order taking (15, 20 x $200) Special handling (800, 600 x $50) Special shipping (18, 20 x $500) Total selling and administrative costs Operating profit CaesarStream $190 000 80 000 110 000 24 000 19 000 8 000 3 000 40 000 9 000 $103 000 $ 7 000 NeroCom

its 50% equity interest. 5. Economic Logic If Charles River Laboratories were to decide to take part in the joint venture proposal, they would share profits equally with ALPES. The projected earnings for the next year are estimated at $3 million, and this amount is expected to double by the fourth year, while forecasted operating margins are expected in excess of 30% Conclusion According to the business strategy diamond analysis, both expansion and working with ALPES are feasible courses

will do. The basic As/Sold As Matrix" (400,000 x 400,000). Obviously, idea of the relative sales value scheme is that all sales the possible combinations are endless, so how does one should show gross margin percent equal to the average choose a "best" approach? The "best" solution is to gross margin percent across the full joint product set. start with demand for the highest value product (405) This average is 19% [(246 - 200) (246)]. This does and work back unsold production to the

of a typical customer in each of the four segments, in current dollar values? Compare these figures to the “Gross margin” figures in the original spreadsheet. What can you learn from this comparison? Solution 1 Following are the lifetime value of a typical customer in each of the four segments, in current dollar values. Segments / Segment description Customer lifetime value Gross margins Large accounts $78,454 $63,000 Large accounts, rebate $70,769 $36,000 Small accounts $10,679 $10,800 Small

contribution margin obtained from the sale of the company’s products manufactured at a particular time. In addition, her recommendation does not give segmented data the ability to be reported on an external basis thus allowing the evaluation of residual income (Accounting Tools, 2016a). It is important to note that if there are no sales during a reporting period, the contribution margin on the income statement will have a zero contribution margin. As sales increase, contribution margins also increase

said “Dreamworks will help us grow our film, television, theme parks and consumer products businesses for years to come” (Stelter, 2016). Consequently, the entrance into the filmed entertainment and theme parks segment explains the decrease in gross profit percentage from 2014 to 2016 along these business segments. Moreover, Comcast closed a multi-year movie distribution deal with Alibaba to tap into the Chinese Market, which Furious 7 and Jurassic World made almost $630 million in the box office

Operations Operationally speaking, the two franchises operate in a very similar manner with some notable differences. Planet Fitness and Snap Fitness are both self-service facilities open 24 hours a day, 7 days a week. The support offered by each respective franchisor is essentially the same as it relates to training, marketing and advertising (see Table 2). Table 2: Franchise Operating & Support Comparison Planet Fitness Snap Fitness Absentee Ownership Not allowed Allowed Locations Owned 87%

1Question 1 1.1Introduction This assignment will analyse and compare the financial performance between NEXT and DEBENHAMS by examining their latest Annual Reports. In order to conclude and comment on these two businesses, appropriate ratios will be calculated through the figures in their business financial statements and the information regarding their industry and market conditions in Annual Reports will also be analysed. NEXT is a British brand, the main products of which include clothing, shoes