I was able to determine the level of production based on the the tab before P&L, and then recreated a new P&L based on a change of allocations, or restatement of both direct and indirect costs. Based on the revised sheets, what should be the new level of production for each product. It took approximately 10 hours to generate a s ...continues
A plan for how the company will respond to future changes in the keyboard market.
The goal is to support your conclusions with data, and explain the difference between the long run and the short run and how this distinction is important for X keyboard division, the conditions under which the company should exit the keyboard market and why,the conditions that determine the length of the short run for X's keyb ...continues
Calculate the Operating Leverage
I calculated the break-even points for three products - keyboard, software, soundcard - and I am confident my calculations are perfect. I need help with calculating the operating leverage for software and keyboard divisions, and need some help explaining the assumptions and calculations for each. The attached files gives a good ...continues
Growth in Profits - Degree of Operating Leverage?
If the sales of both software and deyboad divisions increase at the same rate, which will have the fastest growth in profits? I believe the key is derived by using DOL, or the degree of operating leverage. I am not sure how to apply this methodology to the sample data attached below.
Effect of Operating Leverage on Company's Risk Position
Describe how expanding the division with the highest operating leverage would affect the company's risk position. Based on the degree of operating leverage, how will this impact the risk?
Invest in New Product or Shift Focus?
Provide a recommendation for whether the company should begin producing the new soundcard and, if the company should begin production, in which production technology should the company invest? Please see file attached, thank you for your help.
Assessment of Current Fare and the Maximizing of Profits
Need help with an assessment of whether the current fare maximizes profits My instincts say no. If not, need help identifing the fare that should be charged. Looking for evidence that it is the best fare by showing that profits are highest if this fare is charged. Notes: Comment on the suggestion that the company could ...continues
Price-Discrimination Strategies
Should the company use price-discrimination strategies to improve profitability? I would believe it is yes, they have some power over buyers and only two other airlines service the route. Please see attached for full background.
Analysis of Price Elasticity of Demand according to Price Sensitivity
Based on each group of travelers according to their price sensitivity, need help to analyze the price elasticity of demand for each group. Problem: Clear Blue Sky Airlines is under performing. The Raleigh-Durham to Chicago route is less profitable than our other routes. Background... Concerns and policy... Please c ...continues
What is the recommended pricing based on each group of consumers?
Recommend a pricing plan that effectively separates each group of consumers. Providing actual prices is not necessary, plan should clearly indicate the level of pricing for each group. Not sure how to go about this calculation. The breakeven, marginal costs, is relatively easy. The degree of electicity to me is very complex.
