Business Administration 2257 Study Guide - Final Guide: Fixed Asset, Fixed Cost

• School: Western University
• Department: Business Administration
• Course: Business Administration 2257
• Professor: Shannon Carter

Document Summary

Framework: read over whole case, highlight important details/ things that jump out/ triggers, make notes, and establish role/ viewpoint, qualitatively analyze: industry/ environment (current trends, big issues, threats, etc. Are we seasonal?: quantitatively analyze: skim over given statements, make notes/inferences. Type of inv. should match length of fin; st should be for seasonal/operating cash req, not fas. Match sources in fin to uses in ops. Statement of cash flows (if info for multiple years, do) Units = fixed costs / uc (cid:0) (selling price vc per unit) Sales = fixed costs / cmr (cid:0) (sp vc per unit)/sp. Target units = (fc + t. profit)/(sp vc per unit) Target sales = (fc + t. sales)/[(sp vc per unit)/sp] Units = fc / wacmr for firms with multiple products. Wacmr = (sp1 x expected % of revenue 1) + (sp2 etc) Roi = (ncf/investments) x 100 (cid:0) compare to current/industry. * add cogs and commission to denominator (vc)