The company currently sells 12 products through the efforts of three sales representatives to 10 restaurants. The
Question:
The company currently sells 12 products through the efforts of three sales representatives to 10 restaurants. The company, like all small businesses, is always interested in finding ways to increase revenues and decrease expenses.
For question B
Flagstaff House is the Best customer's total profit = 20,,454.
the three worst selling poducts is SDT , P, RL.
Their total profit STD= 6,300 , p=5,420 , RL=3,226
(B) Bob plans to stop selling the three worst-selling products (by total profit) to the best customer. However, if he does so it is expected that the best customer's profit with the remaining products will fall by 20%. (Consider that future profits will be similar to past profits.) This is because that customer may start buying from competitors. Should Bob do that?
For question C, the total Cost for all products = ?304,897
(C) The company needs cash to purchase produce for future sales. (Assume past and future sales/costs are similar.) Bob plans to take a $305,000 loan.
C1. Is the loan enough to cover total costs?
C2. Bob obtained loan quotations from several banks as follows:
- Bank I offered a loan at 5.8% APR (annual percentage rate) to be paid back in 12 fixed monthly payments.
- Bank II offered a loan to be paid back in 12 fixed monthly payments of $26 thousand each.
- Bank III offered a loan at 5% APR to be paid back in fixed monthly payments of $26,110.
- What is the best offer for Bob? Why?
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren