1. Given the following, depict fully and explain break-even in units, break-even in dollars, total revenue line, total cost line, fixed cost line, break-even point, etc.
Fixed Cost: $120,000
Sales per Unit: $15.00
Variable cost per Unit: $3.00
Include a discussion regarding sensitivity analysis for an inelastic product.
In: Economics
How would you satisfy both retailers and consumers when using revenue management tactics, since the same two customers might actually pay different prices for the same product/service as discussed.
In: Operations Management
Explain how entrepreneurs profit from freemium revenue models. What are some pitfalls to avoid when structuring freemium models, and how can they be avoided?
In: Operations Management
Amazon can generate extra revenue from other businesses by offering its excess capacity to those who need it. Like most companies, Amazon uses only a small portion of its total computing capacity at any time. Its infrastructure is considered by many to be among the most robust in the world. Write a 1-2 page analysis using the referencing the following criteria:
In: Computer Science
Explain the MIS impact on revenue, fixed costs, variable costs, initial investment, training, implementation, customer acquisition, customer retention, and customer satisfaction .
In: Computer Science
prepare statement of cash flow: Sales revenue $454,707 Sales discount $56,240 Sales return and allowance $5,687 Beginning inventory $251,890 Purchases $511,692 Ending inventory $628,122 Operating expenses, including depreciation of $46,500 $58,910 Income tax expense $27,280 Interest expense $4,730 Loss on disposal of plant assets $7,500
| Additional data: | |||
| 1. New equipment costing $85,000 was purchased for cash during the year | |||
| 2. Old equipment having an original cost of $57,000 was sold for $1,500 cash | |||
| 3. Bonds matured and were paid off at face value for cash | |||
| 4. A cash dividend of $40,350 was declared and paid during the year | |||
In: Accounting
3. Your company wishes to determine which inventory items generate the most revenue. How could you use QuickBooks to develop this information?
4. At year-end, you wish to confirm the quantity on hand for each inventory item. How would you use QuickBooks to determine the quantity and value of the ending inventory?
5. Your company wishes to view the profitability of each inventory item. How could you use QuickBooks to develop this information?
In: Accounting
Burbank, California
Over two decades, your predecessor and boss, CEO Michael Eisner, accomplished much, starting the Disney Channel, the Disney Stores, and Disneyland Paris, and acquiring ABC television, Starwave Web services (from Microsoft cofounder Paul Allan), and Infoseek (an early Web search engine). But his strong personality and critical management style created conflict with shareholders, creative partners, and board members, including Roy Disney, nephew of founder Walt Disney.
One of your first moves as Disney’s new CEO was repairing relationships with Pixar Studios and its then CEO Steve Jobs. Pixar produced computer-animated movies for Disney to distribute and market. Disney also had the right to produce sequels to Pixar Films, such as Toy Story, without Pixar’s involvement. Jobs argued, however, that Pixar should have total financial and creative control over its films. When Disney CEO Michael Eisner disagreed, relations broke down, with Pixar seeking other partners. On becoming CEO, you approached Jobs about Disney buying Pixar for $7 billion. More important than the price, however, was promising Jobs and Pixar’s leadership, President Ed Catmull and creative guru John Lasseter, total creative control of Pixar’s films and Disney’s storied but struggling animation unit. Said Jobs, “I wasn’t sure I could get Ed and John to come to Disney unless they had that control.”
Although Pixar and Disney animation thrived under the new arrangement, Disney still had a number of critical strategic problems to address. Disney was “too old” and suffering from brand fatigue as its classic but aging characters, Mickey Mouse (created in 1928) and Winnie-the-Pooh (licensed by Disney in 1961), accounted for 80 percent of consumer sales. On the other hand, Disney was also “too young” and suffering from “age compression,” meaning it appealed only to young children and not preteens, who gravitated to Nickelodeon, and certainly not to teens at all. Finally, despite its legendary animated films, over time Disney products had developed a reputation for low-quality production, poor acting, and weak scripts. Movies “High School Musical 3: Senior Year,” “Beverly Hills Chihuahua,” “Bolt,” “Confessions of a Shopaholic,” “Race to Witch Mountain,” and “Bedtime Stories” disappointed audiences and failed to meet financial goals. As you told your board of directors, “It’s not the marketplace, it’s our slate [of TV shows and movies].”
With many of Disney’s brands and products clearly suffering, you face a basic decision: Should Disney grow, stabilize, or retrench? Disney is an entertainment conglomerate with Walt Disney Studios (films), parks and resorts (including Disney Cruise lines and vacations), consumer products (i.e., toys, clothing, books, magazines, and merchandise), and media networks such as TV (ABC, ESPN, Disney Channels, ABC Family), radio, and the Disney Interactive Media Group (online, mobile, and video games and products). If Disney should grow, where? Like Pixar, is another strategic acquisition necessary? If so, who? If stability, how do you improve quality to keep doing what Disney has been doing, but even better? Finally, retrenchment would mean shrinking Disney’s size and scope. If you were to do this, what divisions would you shrink or sell?
Next, given the number of different entertainment areas that Disney has, what business is it really in? Is Disney a content business, creating characters and stories? Or is it a technology/distribution business that simply needs to find ways to buy content wherever it can, for example, by buying Pixar and then delivering that content in ways that customers want (i.e., DVDs, cable channels, iTunes, Netflix, social media, Internet TV, etc.)?
Finally, from a strategic perspective, how should Disney’s different entertainment areas be managed? Should there be one grand strategy (i.e., growth, stability, retrenchment) that every division follows, or should each division have a focused strategy for its own market and customers? Likewise, how much discretion should division managers have to set and execute their strategies, or should that be controlled and approved centrally by the strategic planning department at Disney headquarters?
If you were CEO at Disney, what would you do?
Please white down with details
In: Operations Management
CircuitTown commenced a gift card program in January 2018 and
sold $13,900 of gift cards in January, $18,700 in February, and
$20,450 in March of 2018 before discontinuing further gift card
sales. During 2018, gift card redemptions were $8,500 for the
January gift cards sold, $5,100 for the February cards, and $6,050
for the March cards. CircuitTown considers gift cards to be
“broken” (not redeemable) 10 months after sale.
Required:
1. How much revenue will CircuitTown recognize
with respect to January gift card sales during 2018?
2. Prepare journal entries to record the sale of
January gift cards, redemption of gift cards (ignore sales tax),
and breakage (expiration) of gift cards.
3. How much revenue will CircuitTown recognize
with respect to March gift card sales during 2018?
4. What liability for deferred revenue associated
with gift card sales would CircuitTown show as of December 31,
2018?
In: Accounting
Memo 4 To: Pricing Manager, Tri State Region From: Regional Vice President, Tri-State Region Re: Revenue from EPIX As you are aware, we recently added the EPIX Movie Channels as part of a new tier of programming for our digital video subscribers. The EPIX channels are sold as an add-on package for $9.75 per month, but we would like to potentially increase our contribution margin from our subscriber base. Currently we have 15,059 subscribers, generating monthly revenue of $146,823. In an earlier study, our marketing department generated data on sales quantities at various price levels. In addition, we have included the licensing cost as well as regional expenses. Please provide a recommendation of the profit-maximizing price, and how much our profits will increase if we adjust price to the recommended level. Also, please note whether this will impact our revenue.
In: Economics