Question: Question 3 [10 marks]: The below table contains the current situation of an Electronic Company n and the three opinions for the three departments (MD,

Question 3 [10 marks]: The below table contains
Question 3 [10 marks]: The below table contains the current situation of an Electronic Company n and the three opinions for the three departments (MD, FD, and OMD) fr company contribution by at least 10%. Complete the below table and c results. The below table contains the current situation of the Electronic Company net contribution, and the three opinions for the three departments (MD, FD, and OMD) for improving the company's contribution. Complete the table and comment on your results. Sales Cost of Goods -Gross Margin Finance Costs Subtotal Current AED 300,000 -180,000 -20,000 Marketing (MD) Option Increase Sales Revenue by 20% Marketing/Finance (FD) Option Increase sales by 10% and Reduce Finance Costs by 10% (300,000*1.2) (300,000 1.1)-330,000 360,000 (-180,000 1.2) (-180,000 1.1)--198,000 -216,000 120.000 (360,000-216,000) (330,000-198,000)- 144,000 132,000 -20,000 (-20,000*0.9)--18,000 Taxes at 25% Contribution 75,000 100.000 (144,000-20,000)- 124,000 25,000 (124,000*25%)- (114,000 25%)-28.500 31,000 (124.000-31,000)- (114,000-28,500)- 93,000 85,500 (132,000-18,000)- 114,000 (93-75)/75-24% (102-75)/75 = 36% Operations Management (OMD) Option Reduce Production Costs by 20% 300,000 (-180,000*0.8)- -144,000 (300,000-144,000)- 156,000 -20,000 (156,000-20,000)- 136,000 (136,000 25%)- 34,000 (136,000-34,000)- 102,000 (85.5-75)/75= 14% Note: Gross margin = Sales - Cost of Goods # Subtotal = Gross margin-Finance costs Tax Subtotal tax rate # Contribution = Subtotal - Tax

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