Excel Modeling: Sports Feet Manufacturing Planning and Implementing the Model The first step in this modeling exercise was to plan for the variables that will later be used in the desired calculations. Annual fixed cost ($52,000), unit variable cost ($9), and unit selling price ($25) need to be utilized as inputs for calculations on outputs such as annual revenue, annual total cost, and annual profit / loss (). This data was then

Costing Case Study The managers at Pringly Division need to make a decision regarding the pricing of a new product. There are two strategies suggested; the first is for the product to be sold at $170, the second strategy is to increase the marketing and increase the price. In both cases, the firm has a requirement that they will make a $4,000,000 profit. In order to assess which is likely

assist the Pringly Division to set up the appropriate pricing for the new product. To achieve this objective, the paper carries out the break-even analysis that will assist the company to fix the appropriate pricing and quantity for the new product. The company had not been able to achieve its sales target in the past making the company to lose some profits. Thus, the company has decided to reduce its

Opportunities Demographics throughout all Australian cities reflect significant opportunity for an online DVD ordering service, replicating the success of NetFlix in the U.S. Development of music and other forms of digital content can also specifically be sold through this channel once established. Potential exit strategy is to sell QuickFlix to NetFlix. Threats Well-funded broadband providers attack the downloadable movie market and force a premature consolidation of this business model. Pricing becomes more inelastic and profitability suffers. Postal

Dibsa should turn towards the market-based pricing strategy, which sees the implementation of competitive prices for the 3-in-1 Lawnmower. The selection of this combination of strategies would generate several impacts upon the company, but most of them would be obvious at product lifecycle level. In this order of ideas: The sales revenues would be significantly high throughout the first six months and they would allow the company to cover for

If the estimates from the investment project are found to be viable, then the development of the capital budget for the particular project commences. The project investment will be included with the master budget of the entity along with the other investments. The process ends on reevaluation. Because of the long-term nature of capital investment projects, the estimates are coupled with certain risks. In view of this, an approved