Case 6 Sweats Galore

In: Business and Management

Submitted By edwardsmay04
Words 1592
Pages 7
Answer Key: Case 6 - Sweats Galore

Question 1 It's always important to set goals to measure the success of any business. However, the first three goals are more of a mission statement while the fourth is an objective for the company. The problem is there no plan and one objective. What is he going to do if the company doesn't net the $25,000? Or what if it nets the $25,000 but there is not enough cash to sustain the business? There needs to be more objectives to make allowances for these types of situations. There needs to be a plan of action where goals change from period to period. Otherwise, the business cannot succeed.

Question 2 Hi-Lo Maintenance Units Cost September 8,000 $1,914.00 January 2,000 $1,716.00 Difference 6,000 $198.00 Cost/unit $0.033

Hi-Lo Utilities Units Cost September 8,000 $1,400.00 January 2000 $1,100.00 Difference 6,000 $300.00 Cost/Unit $0.050 January Sales 12000 January /unit cost 16 January Units 750 Maintenance Cost January Units 750 Cost/unit $0.033 Total Variable Costs $24.75 Utilities Cost January Units 750 Cost/Unit $0.05 Total Variable Costs $37.50 Question 3 Sales Budget 1 Q 2 Q 3 Q 4 Q Year Next yr 1Q Expected Unit Sales 8,000 10,000 20,000 12,000 50,000 18,000 x Unit Selling Price $16 $16 $16 $16 $16 = Total Revenue $ $128,000 $160,000 $320,000 $192,000 $800,000

1Q 2Q 3Q 4Q Year
Question 4 Total Revenue $128,000 $160,000 $320,000 $192,000 $800,000 Accounts Receivable $0 $38,400 $48,000 $96,000 $182,400 Collected $89,600 $112,000 $224,000 $134,400…...

Similar Documents

Sweats Galore Developed by Jessica Johnson Frazier, Eastern Kentucky University and Patricia H. Mounce, Mississippi College Solutions and Case Suggestions Are Available from Your Instructor. They Are Found on Your

...SWEATS GALORE Developed by Jessica Johnson Frazier, Eastern Kentucky University and Patricia H. Mounce, Mississippi College Solutions and case suggestions are available from your instructor. They are found on your instructor’s Weygandt Managerial 2e book companion site. After graduating from Eastern University in Campus Town, USA with a degree in business, Michael Woods realized that he wanted to remain in Campus Town. After a number of unsuccessful attempts at getting a job in his discipline, Michael decided to go into business for himself. In thinking about his business venture, Michael determined that he had four criteria for the new business. • First, he wanted to do something that he would enjoy. • Second, he wanted a business that would give back to the community. • Third, he wanted a business that would grow and be more successful every year. • Fourth, realizing that he was going to have to work very hard, Michael wanted a business that would generate a minimum net income of $25,000 annually. While reflecting on the criteria he had outlined, Michael, who had been president of his fraternity and served as an officer in several other student organizations, realized that there was no place in Campus Town to have custom sweatshirts made using a silk-screen process. When student organizations wanted sweatshirts for their members or to market on campus, the officers had to make a trip to a city 100 miles away to visit “Shirts and......

Words: 325 - Pages: 2

Sweat Galore

...Question 1 It's always important to set goals to measure the success of any business. However, the first three goals are more of a mission statement while the fourth is an objective for the company. The problem is there no plan and one objective. What is he going to do if the company doesn't net the $25,000? Or what if it nets the $25,000 but there is not enough cash to sustain the business? There needs to be more objectives to make allowances for these types of situations. There needs to be a plan of action where goals change from period to period. Otherwise, the business cannot succeed. Question 2 Hi-Lo Maintenance Units Cost September 8,000 $1,914.00 January 2,000 $1,716.00 Difference 6,000 $198.00 Cost/unit $0.033 Hi-Lo Utilities Units Cost September 8,000 $1,400.00 January 2000 $1,100.00 Difference 6,000 $300.00 Cost/Unit $0.050 January Sales 12000 January /unit cost 16 January Units 750 Maintenance Cost January Units 750 Cost/unit $0.033 Total Variable Costs $24.75 Utilities Cost January Units 750 Cost/Unit $0.05 Total Variable Costs $37.50 Question 3 Sales Budget 1 Q 2 Q 3 Q 4 Q Year Next yr 1Q Expected Unit Sales 8,000 10,000 20,000 12,000 50,000 18,000 x Unit Selling Price $16 $16 $16 $16 $16 = Total Revenue $ $128,000 $160,000 $320,000 $192,000 $800,000 1Q 2Q 3Q 4Q Year Question 4 Total Revenue $128,000 $160,000 $320,000 $192,000 $800,000 Accounts......

Words: 307 - Pages: 2

Sweats Galore

...Art. 1873. If a person especially informs another or states by public advertisement that he has given a power of attorney to a third person, the latter thereby becomes a duly authorized agent, in the former case with respect to the person who received the special information, and in the latter case with regard to any person. The power shall continue to be in full force until the notice is rescinded in the same manner in which it was given. Communication of existence of agency. There are two (2) ways of giving notice of agency with different effects: (1) If by special information, the person appointed as agent is considered such with respect to the person to whom it was given; or (2) If by public advertisement, the agent is considered as such with regard to any person. Public advertisement may be made in any form - through the newspaper, radio, etc. and by person or billboards. In either use, the agency is deemed to exist whether there is actually an agency or not. Manner of revocation of agency. The power of attorney must be provoked in the same manner in which it was given. (par. 2.) If the agency has been entrusted for the purpose of contracting with specified persons, its revocation shall not prejudice the latter if they were not given notice thereof. (Art. 1921.) Nevertheless, revocation made in any manner is effective where the person dealing with the agent has actual knowledge thereof; otherwise, bad faith and fraud would be committed. Art. 1874.......

Words: 2307 - Pages: 10

Case 6

...------------------------------------------------- CASE 6 “Strategic Forecasts and Staffing Formulation” Bosch Group requested an EMP for Kazakhstan in line with the annual strategic long-term planning (eight years). This plan’s purpose is to predict the demand for all levels of staffing for all divisions with using staffing sources such as, expatriates, MDP, JUMP and some external hires. The Kazakhstan operations are divided into four specific products division including gasoline Bosch-Rexroth, security systems and diesel motors each located in separate production sites. Each of these separate functions units are different stage of product maturity. All but one, diesel, has small or no growth. This is because the domestic labor market for qualified managers and specialists is small due to lack of education, lack international experience and the production sites are not an attractive location to Bosch's pool of willing expatriates. Another issue is that higher management positions are solely filled by expatriates. The solution might be, Bosch could expatriates local qualified employees to Germany since a successful manager in this country must be fluent in Russian, which is the language primarily used in business in Kazakhstan and must further be sensitive to the culture of a country with diverse ethnic groups and a strong Islamic and Russian Orthodox community. The firm should also recruit through MDP and JUMP in Germany. In the meantime, expatriates should be......

Words: 339 - Pages: 2

Sweats Galore Case Stuy

...SWEATS GALORE Developed by Jessica Johnson Frazier, Eastern Kentucky University and Patricia H. Mounce, Mississippi College Solutions and case suggestions are available from your instructor. They are found on your instructor’s Weygandt Managerial 2e book companion site. After graduating from Eastern University in Campus Town, USA with a degree in business, Michael Woods realized that he wanted to remain in Campus Town. After a number of unsuccessful attempts at getting a job in his discipline, Michael decided to go into business for himself. In thinking about his business venture, Michael determined that he had four criteria for the new business. • First, he wanted to do something that he would enjoy. • Second, he wanted a business that would give back to the community. • Third, he wanted a business that would grow and be more successful every year. • Fourth, realizing that he was going to have to work very hard, Michael wanted a business that would generate a minimum net income of $25,000 annually. While reflecting on the criteria he had outlined, Michael, who had been president of his fraternity and served as an officer in several other student organizations, realized that there was no place in Campus Town to have custom sweatshirts made using a silk-screen process. When student organizations wanted sweatshirts for their members or to market on campus, the officers had to make a trip to a city 100 miles away to visit “Shirts and More.” ......

Words: 2300 - Pages: 10

Case Study - Nike Sweat Shop

...factories that supply Nike. Students on the campuses of several major U.S. universities with which Nike had lucrative sponsorship deals protested against the ties, citing Nike’s use of sweatshop labor. For its part, Nike took many steps to try to counter the protests. Yes, it admitted, there were problems in some overseas factories. But the company signaled a commitment to improving working conditions. It required that foreign subcontractors meet minimum thresholds for working conditions and pay. It arranged for factories to be examined by independent auditors. It terminated contracts with factories that did not comply with its standards. But for all this effort, the company continues to be a target of protests and a symbol of dissent. The Case Against Nike Typical of the exposés against Nike was a CBS-TV 48 Hours news report that aired October 17, 1996.3 Reporter Roberta Basin visited a Nike factory in Vietnam. With a shot of the factory, her commentary began: The signs are everywhere of an American invasion in search of cheap labor. Millions of people who are literate, disciplined, and desperate for jobs. This is Nike Town near what use to be called Saigon, one of four factories Nike doesn’t own but subcontracts to make a million shoes a month. It takes 25,000 workers, mostly young women, to “Just Do It.” But the workers here don’t share in Nike’s huge profits. They work six days a week for only $40 a month, just 20 cents an hour. Baskin interviewed one of......

Words: 3121 - Pages: 13

Sweat Galore Question 1

...Sweats Galore Question one Yes, it is crucial that Michael stipulate the four criteria when planning for his new business. In stipulating the four the criteria Michael will be able to have a better understanding of how his business will work and why he it is he wants to start his business in the first place. Having the goals made up helps maintain the goals as well as a better management for the business since one knows the direction they want to take it to. Michael started his business because he wants to do something that he enjoys and has previous experience in doing, which only means that he will be better prepared to handle the responsibilities of managing his own business. Michael's willingness to give back to the community will do nothing but benefit him considering that most of his customers are going to be within the community. Michael has a clear idea of what direction he wants to take his new business. He wants to see his business grow and become more successful by the years. This idea of making his business grow will encourage him to make decisions that will benefit his business in both the short and long run. Setting up a goal of an income of 25,000 annually is a good idea. The problem is that there is no plan if the minimum income is not met. There should be a plan of action where the can goals be flexible to change so that the business has a better chance of success....

Words: 259 - Pages: 2

Sweat Galore

...$37.50 | 3. Using the format below, prepare a Sales Budget for the year ending 2008. Sweats Galore | Sales Budget | For the Year Ending December 31, 2008 | | | | Quarter |   | | | 1 | 2 | 3 | 4 | Year | Expected unit sales | | 8 000 | 10 000 | 20 000 | 12 000 | 50 000 | Unit selling price | X | 16 | 16 | 16 | 16 | 16 | Budgeted sales revenue | $ | 128 000 | 160 000 | 320 000 | 192 000 | 800 000 | 4. Prepare a Schedule of Expected Collections from Customers Sweats Galore | Schedule of Expected Collections from Customers | For the Year Ending December 31, 2008 | | | Quarter | | | 1 | 2 | 3 | 4 | | Accounts Receivable 1/1/06 | - 0 - | | | | | First quarter ($ 128 000) | 89 600 | 38 400 | | | | Second quarter ($ 160 000) | | 112 000 | 48 000 | | | Third quarter ($ 320 000) | | | 224 000 | 96 000 | | Fourth quarter ($ 192 000) | | | | 134 000 | | Total collections | $ 89 600 | $ 150 400 | $ 272 000 | $ 230 400 | | 5. Michael learned from talking with Jayne that the supplier is so focused on making quality sweatshirts that many times the shirts are not available for several days. She encouraged Michael to maintain an ending inventory of shirts equal to 25 percent of the next quarter’s sales. Prepare a Purchases Budget for shirts using the format provided. Sweats Galore | Shirt Purchases Budget | For the Year Ending December 31, 2008 | | | Quarter |......

Words: 2091 - Pages: 9

Case Study Sweats Galore

...Cost Case Grading Rubric/Individual Case Date: _______________ Group # or Rater: ____________________________ Course: __________________ Student: ________________ |TRAIT |Unacceptable |Acceptable |Exemplary |Score | |Part 1 – Budgets | |10 points | | | |Part 2 – Financial Statements | |10 points | | | |Actions |No action proposed or proposes infeasible action(s). |More than one reasonable action proposed with|Proposed actions deal with the most important| | | |(0) |some logical defense of the proposal. (1) |issues, are feasible, and are logically | | | | | |defended. (2) | | |Logic and Organization |Does not...

Words: 320 - Pages: 2

Sweats Galore Case Study

...SWEATS GALORE Developed by Jessica Johnson Frazier, Eastern Kentucky University and Patricia H. Mounce, Mississippi College Solutions and case suggestions are available from your instructor. They are found on your instructor’s Weygandt Managerial 2e book companion site. After graduating from Eastern University in Campus Town, USA with a degree in business, Michael Woods realized that he wanted to remain in Campus Town. After a number of unsuccessful attempts at getting a job in his discipline, Michael decided to go into business for himself. In thinking about his business venture, Michael determined that he had four criteria for the new business. • First, he wanted to do something that he would enjoy. • Second, he wanted a business that would give back to the community. • Third, he wanted a business that would grow and be more successful every year. • Fourth, realizing that he was going to have to work very hard, Michael wanted a business that would generate a minimum net income of $25,000 annually. While reflecting on the criteria he had outlined, Michael, who had been president of his fraternity and served as an officer in several other student organizations, realized that there was no place in Campus Town to have custom sweatshirts made using a silk-screen process. When student organizations wanted sweatshirts for their members or to market on campus, the officers had to make a trip to a city 100 miles away to visit “Shirts and More.” ......

Words: 2310 - Pages: 10

Case 6

...There are many reasons to explain why companies have different financial characteristics, and the two most prominent drivers are industry economics and firm strategy. This case provide us financial data and ratios from pairs of participants in eighty different industries, and also describe strategies that they employ, such as how a product is made, how it is marketed, and so on. Our task is to match each firm’s financial data with their strategy description. Industry 1: Health Products The first company focuses on prescription-pharmaceuticals and invests significantly on R&D, so it has come to be seen as the partner of choice for licensing deals with other pharmaceutical and biotechnology firms. Because of its undiversified products and high invest on R&D, this firm should have less fixed assets and higher intangibles. On the other hand, the second company has diversified health-products including pharmaceuticals, consumer health and beauty products, and medical devices, so it should have higher receivables, accounts payable, and cost of goods sold. Moreover, because of its mass-market-oriented strategy, it needs to spend much money on advertising, which makes it has similar SG&A expense with first firm who is the world’s largest prescription-pharmaceutical company. Our conclusion is the first firm is B and the second firm is A (firms’ financial data see table 1). Industry 2: Beer The first company is a national brewer of mass-market consumer beers sold under a......

Words: 1200 - Pages: 5

Sweats Galore

...Cases for Management Decision Making case 6 Sweats Galore Developed by Jessica Johnson Frazier, Eastern Kentucky University, and Patricia H. Mounce, University of Central Arkansas THE BUSINESS SITUATION After graduating with a degree in business from Eastern University in Campus Town, USA, Michael Woods realized that he wanted to remain in Campus Town. After a number of unsuccessful attempts at getting a job in his discipline, Michael decided to go into business for himself. In thinking about his business venture, Michael determined that he had four criteria for the new business: 1. 2. 3. 4. He wanted to do something that he would enjoy. He wanted a business that would give back to the community. He wanted a business that would grow and be more successful every year. Realizing that he was going to have to work very hard, Michael wanted a business that would generate a minimum net income of $25,000 annually. While reflecting on the criteria he had outlined, Michael, who had been president of his fraternity and served as an officer in several other student organizations, realized that there was no place in Campus Town to have custom sweatshirts made using a silk-screen process. When student organizations wanted sweatshirts for their members or to market on campus, the officers had to make a trip to a city 100 miles away to visit “Shirts and More.’’ Michael had worked as a part-time employee at Shirts and More while he was in high school and had envisioned owning......

Words: 2347 - Pages: 10

Sweats Galore-Case Study Problem

...Case Study - Sweats Galore ACCT 3121- Spring 2012 Due: April 24, 2012 The Business Situation After graduating with a degree in business from Eastern University in Campus Town, USA, Michael Woods realized that he wanted to remain in Campus Town. After a number of unsuccessful attempts at getting a job in his discipline, Michael decided to go into business for himself. In thinking about his business venture, Michael determined that he had four criteria for the new business: 1. He wanted to do something that he would enjoy. 2. He wanted a business that would give back to the community. 3. He wanted a business that would grow and be more successful every year. 4. Realizing that he was going to have to work very hard, Michael wanted a business that would generate a minimum net income of $25,000 annually. While reflecting on the criteria he had outlined, Michael, who had been president of his fraternity and served as an officer in several other student organizations, realized that there was no place in Campus Town to have custom sweatshirts made using a silk-screen process. When student organizations wanted sweatshirts to give to their members or to market on campus, the officers had to make a trip to a city 100 miles away to visit “Shirts and More.” Michael had worked as a part-time employee at Shirts and More while he was in high school and envisioned owning such a shop. He realized that a sweatshirt shop in Campus Town had the potential to meet all four of his......

Words: 2350 - Pages: 10

Sweats Galore

...Sweats Galore Horace Bailey April 24, 2012 To: Michael Woods From: Horace Bailey Date: 04/24/2012 Subject: Sweats Galore 1. Hello Mr. Woods. I would like to start off by congratulating you on your new business venture. I have gone over your business goal and I believe that you did an excellent job stating your desires to incorporate the four criteria into your new business. I can tell that you put a great deal of thought into this project from your information and knowledge about the area. You took great initiative traveling to Shirts and More to talk with Jayne Stoll. This shows me you are interested in achieving success and providing a quality product to Campus Town. Also, I am able to grasp your enthusiasm about undertaking such an endeavor as well as the genuine want to provide custom print sweatshirts to the town in which you graduated college. Mixing this with the ever changing economy and socioeconomic trends of our day, I personally believe your business is poised to be successful in the future as more students attend college yearly and word gets out about your product. My only concern came with your wanting to generate a net income of $25,000 annually. While there is nothing wrong with wanting to profit, I believe I could lend you a few suggestions to potentially allow you to achieve our goal earlier. To be more specific, your first three criteria are more along the lines of a mission statement. Your only true objective is criteria four. You do not......

Words: 624 - Pages: 3

Desicion Making Case Sweats Galore

...1. Do you think it was important for Michael to stipulate his four criteria for the business, including the goal of generating a net income of at least $25,000 annually? Why or why not? Answer: Yes, it is important for Michael to stipulate the four criteria during planning for his new business. Michael is wise to set criteria other than simply making a profit. The first three goals are more of a mission statement while the fourth is an objective for the company. However, the reasons why Michael stipulating the four criteria for the business is important are as follows. First, Michael wants to do something he enjoys. Because he has prior experience in a related industry and he has envisioned having his own business he will be better prepared to handle the responsibilities of this new business. Second, Michael wants a business that would give back to the community. Michaels positive attitude will be reflected in the way he handles employees and customers. Michaels business will probably come from customers such as university groups, church groups, civic organizations, youth athletic clubs, and secondary school groups. Because Michael is offering quality shirts at a modest price, he will, in effect, be contributing to the community. Third, Michael wants a business that would grow and be more successful every year. This foresight (wanting to grow and be more successful every year) will encourage him to make decisions that will profit the business not just in the short run, but......

Words: 669 - Pages: 3