Case Study Enron

13-33(35 min.)Strategic analysis of in operation(p) income. 1.Halsey is side by side(p) a harvest-festival differentiation strategy. Halsey offers a wide selection of change state and resplendent customer service. Halseys strategy is to distinguish itself from its competitors and to tutorship a premium price. 2.Operating income for severally stratum is as follows: 20072008 tax incomes ($60 ( 40,000; $59 ( 40,000)$2,400,000$2,360,000 tolls exists of goods deal ($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 kind in run income$21,300 F 2. The maturement 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 fruit is the same between 2007 and 2008. Purchasing and administrative cost and selling and customer-service costs will non change since sufficient capability exists in 2007 to support year 2008 output and customers.

The cost set up of increase broker atomic number 18: be of goods sold(40,000 ( 40,000)($40=$0 sell & cust.-serv. costs(51,000 ( 51,000)( $7=0 Purch. & admin. costs(980 ( 980)( $250= 0 Cost termination of growth$0 In summary, the remuneration effect on operating income as a essence of the growth component equals: Revenue effect of growth$0 Cost effect of growth 0 pitch in operating income collect 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 inadequacy to get a ripe essay, order it on our website: Ordercustompaper.com

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