We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Business Proposal In Clear Hear Scenario - Essay Example

Comments (0)
The contribution margin from Beta is $18 and from Alpha is $12. The difference in the contribution margin is because of the higher selling price of Beta.
Kendra Sherman has procured an order from Big Box…
Download full paper
Business Proposal In Clear Hear Scenario
Read TextPreview

Extract of sample
Business Proposal In Clear Hear Scenario

Download file to see previous pages... The decision will be based on the contribution earned or foregone by adopting an option. In the first option, the company looses a contribution of $11 and in the second option, the company can earn an additional contribution margin of $1 per unit. So, in order to maximize the revenue the company should accept OEMs offer to manufacture the remaining 30000 units. This will result in an additional revenue of $1500000.
From the above figure, it can be seen that the companys contribution becomes negative, if Beta model is switched to Alpha. So, it is advised that the company should adopt the second option. This will help the company to maximize its revenue. By doing so, the company will also be able to make use of its excess capacity. For this, the company will not have to incur any further fixed costs. As a result of this the existing fixed costs will get distributed over the excess units. The utilization of the excess capacity will also lower the Average Cost (AC) of each unit. This is because the Total Cost will now be allocated over a large number of units resulting in a reduced AC.
As the company does not have to incur any extra fixed cost for the excess 100000 units the profit will move up. For the additional units, the only cost that the company has to bear is the Variable Cost as the fixed costs remain fixed irrespective of the level of production.
In order to reduce the cost of production, the company can lower the material cost by setting up production centers near the sources of supply. This will reduce the distribution cost and will thus lower the purchase cost of the material (Kobayshi, 2003).
The company can also lower its overall costs by minimizing waste and ensuring efficient management of the available resources. By purchasing the goods in bulk quantity the company can avail the trade discounts which will reduce the cost of ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
Business Proposal
New business developments have been shaping up, outdoing and replacing the old ways and bringing on board new ways of operations. With the help of Internet, consumers now can have much more choice for their shopping than was the case previously. It also changed enterprise’s business model, saving cost and more efficiency than before. Businesses enjoy the ease of making money and advertising because of going the e-way.
12 Pages(3000 words)Essay
Business Proposal
We look forward to adding your prestigious enterprise on our long list of satisfied clients. Description: Better Comm. will create a single centralized design studio in Mumbai along with 24 satellite in-house design studios to cater to the packaging and consistency of look and feel, of Tesco's proposed chain of retail outlets in India Proposal Number-23568 Better comm.
4 Pages(1000 words)Essay
Decisions Business Scenario
Such issues aggravate the complexities of business. In addition, economic issues like aggressive competition and governmental controls also make the business scenario a problematic one to tackle. But as
10 Pages(2500 words)Essay
Business Scenario
The purpose of risk analysis is to be proactive in listing the risks and to have a plan for managing the main ones. It is important to get an understanding of the factors
5 Pages(1250 words)Essay
Business Proposal
The service thus sought to address the incompetency’s of the existing payment platforms by coming up with a system which was subject to the sanction laws of the U.S government but still met the demands of many people globally. PayPal operates as an intermediary between
4 Pages(1000 words)Essay
Business Proposal
It will be very simple to order coffee from Coffitoff. When an employee gets to the office, school or where ever he works he will just need a computer or smartphone to get on the website and order coffee that will be delivered within 10 minutes maximum. As it is a service
4 Pages(1000 words)Essay
Business proposal
Moreover, individual expense report is the business proposal that I would love to initiate in operating a business. It enables one to be in charge of his or her money. Additionally,
5 Pages(1250 words)Essay
Business Proposal
It enables the workers to acquire knowledge on new processes in their areas of expertise. Training improves employees’ competence level increases as they receive updates of the developments that are in the market and economy. The labor laws of the
2 Pages(500 words)Essay
Business proposal
We have been in the market in the USA for 5years building a steady market and provided the best products in the market. The food productivity in Russia has been decreasing over some time. Russia is one of the largest food market importing country and the food
6 Pages(1500 words)Essay
Business scenario Analysis 06012
As the consultancy firm analyzes the restaurant, some redundancies were found in the part of owners’ style of management, the level of competition faced, economic
5 Pages(1250 words)Essay
Let us find you another Essay on topic Business Proposal In Clear Hear Scenario for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us