Tranmere PLC estimates that a new product will sell in sufficient quantities to justify its manufacture at a selling price of £175. The company needs to invest £5 million to produce a quantity of 10,000 of these new products per year and requires a return on that investment of 12% per annum. The current prediction is that the product will cost £140 to manufacture. To achieve the target selling price and target rate of return, the product needs to be re-engineered to reduce its cost of manufacture by:
Answer to relevant QuestionsExplain the idea of value-based management and how shareholder value relates to the interaction between product and capital markets. A business has agreed to undertake an advertising campaign that will cost £240,000 to be carried out equally over the financial year beginning 1st January. Half of the annual cost is to be paid six-monthly in advance on the ...Brigand Ltd has 2 million shares issued with a market price of £2.50 each. The company wants to pay a dividend of 60% of its after-tax profits of £1,750,000. The dividend yield would be: d) 21% Opening stock is £350,000. Closing stock is £325,000. Purchases are £650,000. Sales are £1,000,000. The cost of sales is: d) £675,000 Carry out a customer profitability analysis and make recommendations in relation to any future strategies DeepNDark should take in relation to its Top 5 customers.
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