Dog-Ann is a pet supplies company serving in Midwest. It sells pet supplies and
ID: 337187 • Letter: D
Question
Dog-Ann is a pet supplies company serving in Midwest. It sells pet supplies and provides pet grooming and training services. The table below shows the income statement of Dog-Ann for the previous year.
A.) Develop the strategic profit model of this organization and draw the diagram.
B.) What is the firm’s profit margin?
C.) What is the firm’s ROA
Suppose the firm undertakes a supply chain improvement project. It improves its service level to customers by opening more warehouses which means it will be able to deliver more quickly to customers. The result is a 10% increase in sales. Assume the cost of goods sold increased by 6%. The new warehouse requires additional new asset investment of $40,000. Fixed expenses increased by $1,000 because of the expense of operating the warehouses. Assume other variables do not change. Answer the following three questions based on this information. `
C.) Show the NEW strategic profit model (Please don't forget this part)
D.) What is the new asset turnover?
E.) What is the firm’s new return on assets?
Sales $250,000 Cost of Goods $150,000 Fixed Assets $105,000 Variable Expenses $25,000 Fixed Expenses $35,000 Inventory $10,000 Accounts Receivable $5,000 Other Current Assets $5,000Explanation / Answer
Dog-Ann is a pet supplies company serving in Midwest. It sells pet supplies and provides pet grooming and training services. The table below shows the income statement of Dog-Ann for the previous year.
A.) Develop the strategic profit model of this organization and draw the diagram.
B.) What is the firm’s profit margin?
C.) What is the firm’s ROA
Suppose the firm undertakes a supply chain improvement project. It improves its service level to customers by opening more warehouses which means it will be able to deliver more quickly to customers. The result is a 10% increase in sales. Assume the cost of goods sold increased by 6%. The new warehouse requires additional new asset investment of $40,000. Fixed expenses increased by $1,000 because of the expense of operating the warehouses. Assume other variables do not change. Answer the following three questions based on this information. `
C.) Show the NEW strategic profit model (Please don't forget this part)
D.) What is the new asset turnover?
E.) What is the firm’s new return on assets?
Sales $250,000 Cost of Goods $150,000 Fixed Assets $105,000 Variable Expenses $25,000 Fixed Expenses $35,000 Inventory $10,000 Accounts Receivable $5,000 Other Current Assets $5,000Related Questions
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