Sam Ratha recently purchased Yard & More, Inc., a wholesale distributor of equipment and supplies for lawn

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Sam Ratha recently purchased Yard & More, Inc., a wholesale distributor of equipment and supplies for lawn and garden care. The organization, which is headquartered in Baltimore, has four distribution centers that service 14 eastern states. The centers are located in Boston, Massachusetts; Rye, New York; Reston, Virginia; and Lawrenceville, New Jersey. The company’s profits for 20x7, 20x8, and 20x9 were $225,400, $337,980, and $467,200, respectively.

Shortly after purchasing the organization, Ratha appointed people to the following positions: vice president, marketing; vice president, distribution; corporate controller; and vice president, research and development. Ratha has called a meeting of his management group. He wants to create a deluxe retail lawn and garden center that would include a large, fully landscaped plant and tree nursery. The purposes of the retail center would be

(1) To test equipment and supplies before selecting them for sales and distribution and

(2) To showcase the effects of using the company’s products. The retail center must also make a profit on sales.


Required

1. What types of information will Ratha need before deciding whether to create the retail lawn and garden center?

2. To support his decision, Ratha will need a report from the vice president of research and development analyzing all possible plants and trees that could be planted and their ability to grow in the places where the new retail center might be located. How would each of the four w’s pertain to this report?

3. Design a format for the report in 2.

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Managerial Accounting

ISBN: 978-0618777181

8th Edition

Authors: Susan V. Crosson, Belverd E. Needles

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