A1. Budget Concerns Competition Bikes budget has several areas of concern that need to be address. 1. Units expected to be sold for year nine is 3510. Competition Bikes is predicting that they will sell 3510 Bikes but they only sold 3400 Bikes in year eight down 15% from year seven 4000 units sold. Competitions Bikes has budget to high because the current economic down turn is showing no signs of relief for the next three years. Many of Competition Bikes customers are sponsored riders and many sponsors have pulled their funding to their rides. Competition Bikes has not presents a plan that would support their projections. Competition Bikes should lower there should lower the expected units sold so not to over order raw materials that will …show more content…
7. Distribution network Contracted Support standard out is $50,830, actual output is $50,460. This is a favorable variance of -$370. This is a selling expense that is lower due to lower sales. 8. Administrative Salaries standard output $170,000, actual output is $171,000. This is an unfavorable variance of $1000. This increase is due to the Competition Bikes efforts to increase sales. Overtime was authorized to work on advertising campaign. 9. Executive Compensation standard output is $220,000, actual output is $218,000. This is a favorable variance of -$2000. This variance is due to an executives not taking a bonus due to lower sales. 10. Employment taxes standard output $29,835, actual output $29758. This is a favorable variance of -$77. This variance is due to an employee furlough because of low sales.
11. Utilities and services standard output $150,000, actual output is $$218,000. This is a favorable variance of -$1777. This variance is due to reduce sales, less power at the plant is needed because less units are being made. 12. Research and Development standard output is $85,861, actual output is $82,841. This is a favorable variance of -$3,020. This variance is due to cut backs in R&D because of slow sales and low demand for new bikes. 13. Other General and Admin Expenses standard output $170,000, actual output is $172,000. This is an unfavorable variance of $2000. This increase is due to addition materials needed for advertising. 14. Other utilities and
Starting from a company of less than 75 workers and owning less than 20,000 SCU for production, research, quality assurance and conduct warranty work Off The Chain Bikes has doubled the plant capacity and hearing doubling the workforce within two short years. The company is successful by targeting and capturing lucrative market shares by heavily investing in the desired technical specs and design styles of one of the most influential Racing bikes. Our keen ability to thoroughly research market demands, predicting competitive strategies between the four market majority shareholders by reviewing and interpreting the marketing reports and our aggressive design and development plans have significantly increased our market share and increase shareholder value. Our core competencies and strategic goals will be realized by carefully following our established plans and aggressively price our bikes to increase total market share.
Management should note that the level of activity was above what had been planned for the month. This led to an expected increase in profits of $1,100. However, the individual items on the report should not receive much management attention. The favorable variance for revenue and the unfavorable variances for expenses are entirely caused by the increase in activity.
Competition Bikes, Incorporated (Inc.) makes bicycles for professional and other highly accomplished riders who compete in bike races, biathlons, and triathlons. Approximately sixty percent of all race winners have been victorious using bicycles designed by Competitions Bikes, Inc. This extraordinary success rate is a topic of conversation among racers and has led to exponential success for founder Larry Ferguson who formed the company in 2001 in his garage. Competition Bikes is known for quality products and is leader in the market with the CarbonLite
Medicare part A is hospital coverage for inpatient hospital stays. More specifically, Part A is coverage for critical access hospitals, inpatient rehabilitation facilities, and long-term care hospitals. Part A also covers inpatient care in a skilled nursing facility (not supervisory or long-term care), hospice care services and some home health care services. Inpatient care in a Religious Nonmedical Health Care Institution is also covered. In the scenario provided, Mrs. Zwick is admitted to the hospital as an inpatient because she had a stroke. The patient was deemed by the physician to need continued treatment after discharge due to the patient 's condition and was discharged to a skilled nursing facility.
Snowboards had a cash and cash equivalent of 83.8% during year 12 and year 13, but that
I review the Blue Valley School District Acceptable use policy for student’s K-12. Technology use is important for all students, teacher, parents and school districts in order to provide a safe digital learning environment. Technology gives way to valuable educational experience that all students are entitled to. School districts have the responsibility to provide acceptable use policies for the digital devices, and the Internet provided to students, which is owned by the district. Whenever technologies are brought upon school grounds, or to school activities, even when the technologies are not owned by the school the technologies are still subject to adhere to the acceptable use policies. The intended use of technology in education is to open new learning experiences, benefit the student’s education experience, and create skills for future academic endeavors.
3. Post the file from the same page where you accessed this Assignment, using the
A1. The Nature of the incident was that an employee was able to hack into the computer system and gain access to the financial payroll system, human resources and even email system. This employee used several methods in order to gain access into the system: IP spoofing, Data modification, Man in the middle attack and compromised-key attack. As a result the employee was able to tamper with payroll system. An auditor discovered the discrepancies and tried to make upper management aware of the situation through email, but the email was intercepted by the hacker. The hacker impersonated an employee and persuaded the auditor into granting him more access into the system which resulted in additional sabotage into the payroll system. Hacker
STEVENSON was only interested in attending the Governors’ conference because he did not like the idea of the reestablishment of the BROYLES COMMISSION. It was said that his first task that he wanted to complete was to speak to Hoover in order to convince him to meet with two members from the American Legion, which would include Illinois State Commander Lawrence J. Fenlon. Hoover was able to understand where STEVENSON was coming from he went so far to inform STEVENSON to “beware of amateur Red-hunters, citing several examples of bumbling counter-subversives who had interfered with the Bureau’s sophisticated internal security operations” (53). Many people were lobbying for the BROYLES COMMISSION to be reintroduced, but something more important came up, which was the issue of the investigation into state educational institutions. During the meeting in February of 1951 STEVENSON and many other state governors that
The major issue is determining why Ferguson Foundry Limited’s (FFL) actual profit was $367,600 lower than budgeted, despite selling 2,000 more wood stoves (12,000 instead of 10,000 units). This will be explained using Variance Analysis to demonstrate the underlying reasons why the company failed to meet its president’s expectations. FFL profit for 2010 was below budget due to many factors both production and marketing related.
Lester Smith (Smith) has owned a 20-acre parcel of land in the City of Lilliput, Minnesota since 1980. Seven acres consist of wetland, and on the remaining 13, Mr. Smith has built a large house, a barn, and an outdoor horse-riding arena that he operates as a business. In 2005, Smith decided to build a second barn including an indoor riding arena.
The balanced scorecard for the customer aspect correctly identifies factors that are needed to maintain a symphony that can be considered world class by all. The scorecard acknowledges the fact that they have to employ high
$135,000 $90,000 TOTAL REVENUE $3,136,500 $2,352,375 $1,568,250 Expences TOTAL VARIABLE COSTS $454,000 $340,500 $227,000 TOTAL FIXED COSTS $1,403,000 $1,403,001 $1,403,002 TOTAL EXPENSE BEFORE IT $1,857,000 $1,743,501 $1,630,002 EBIT $1,279,500 $608,874 -$61,752 Depreciation $320,000 $320,001 $320,002 EBITDA $1,599,500 $928,875 $258,250 Furnishing Interest $110,000 $110,000 $110,000 20yr Mortgage Interest $182,000 $182,000 $182,000 TOTAL INTEREST $292,000 $292,000 $292,000 TAXES (40%) $395,000.00 $126,749.60 -$141,500.80 Furnishing Principal $180,160 $180,160 $180,160 20yr Mortgage Principal $49,713 $49,713 $49,713 TOTAL PRINCIPAL $229,873 $229,873 $229,873 NET INCOME $362,627 -$39,749 -$442,124 DIVIDEND PAYMENT $29,010 -$3,180 -$35,370 RETAINED EARNINGS $333,617 -$36,569 EBIT/INTEREST 4.38 2.09 (0.21) EBITDA/INTEREST 5.48 3.18 0.88 BURDEN $675,121.67 $675,121.67 $675,121.67 EBIT/BURDEN 1.90 0.90 (0.09) ROE= Net Income/OE (H1) 32.97% -3.61% -40.19% Revenue Estimates Revenue Item 100% Monthly 75%
Consumers are not limited to a single market, many of them will be purchasing multiple bikes, but all of them have specific preferences. Successful company will meet customer’s needs and maximize sales by growing the potential market size as well as taking sales from competitors.