Case Study Enron

13-33(35 min.)Strategic analysis of in operation(p) income. 1.Halsey is following a harvest-festival differentiation strategy. Halsey offers a wide selection of clothes and resplendent customer service. Halseys strategy is to distinguish itself from its competitors and to charge a premium price. 2.Operating income for apiece year is as follows: 20072008 Revenues ($60 ( 40,000; $59 ( 40,000)$2,400,000$2,360,000 tolls cost of goods dispense ($40 ( 40,000; $41 ( 40,000)1,600,0001,640,000 marketing & customer service be ($7 ( 51,000); $6.90 ( 43,000)357,000296,700 Purchasing & admin. be ($250 ( 980; $240 ( 850) 245,000 204,000 Total apostrophizes 2,202,000 2,140,700 Operating income$ 198,000$ 219,300 revision in operating income$21,300 F 2. The Growth Component [pic]=[pic] =(40,000 ( 40,000) ( $60 = $0 [pic] = [pic] × [pic] [pic]=[pic] × [pic] Pieces of clothing that would be required to be purchased in 2008 would be the same as that required in 2007 because railroad siding is the same between 2007 and 2008. Purchasing and administrative cost and merchandising and customer-service costs will not change since sufficient depicted object exists in 2007 to support year 2008 output and customers.

The cost proceedss of increase broker are: Costs of goods sold(40,000 ( 40,000)($40=$0 Selling & cust.-serv. costs(51,000 ( 51,000)( $7=0 Purch. & admin. costs(980 ( 980)( $250= 0 Cost payoff of growth$0 In summary, the net effect on operating income as a result of the growth atom equals: Revenue e ffect of growth$0 Cost effect of growth 0! Change in operating income repayable to growth$0 The Price-Recovery Component [pic]=[pic] =($59 ( $60) ( 40,000 = $40,000 U [pic]=[pic][pic] [pic]=[pic] × [pic] Costs of goods sold($41 ( $40) ( 40,000=$40,000 U Selling & cust.-serv. costs($6.90 ( $7)(51,000=5,100 F Purchas. & admin. costs($240 ( $250)( 980...If you want to endure a full essay, order it on our website: BestEssayCheap.com

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