Lecture 4 - Accounting 2.pptx - BUS 101 ACCOUNTING CASE PART II OCT 16TH 2018 Lecture#4 OUTLINE One More Example Cannibalization Review of Financial

Lecture 4 - Accounting 2.pptx - BUS 101 ACCOUNTING CASE...

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BUS 101 ACCOUNTING CASE PART II OCT. 16 TH 2018 Lecture #4
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OUTLINE One More Example Cannibalization Review of Financial Statements Financial Ratios Liquidity (debt versus assets), capital structure (leverage, debt versus equity) and profitability (investment versus profit) … FANG Comparison Example
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KOKOREÇCI : HOW PROFITABLE IS IT?
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BABU SPEAKER CASE What We’ve Done Different Types of Costs Contribution Margin Breakeven Point How much money can we make in the deal? What We Still Need to Do Cannibalization Cash Flow Financial Analysis Is Babu in the right place to take on this deal?
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CANNIBALIZATION Loss of sales volume, revenue, or market share of one product by introducing a new product into the same market
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CANNIBALIZATION
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CANNIBALIZATION EXAMPLE Regular Umbrellas Sales Price: 20 TL Variable Cost: 10 TL Last Month Sales: 100 Wide Umbrellas Sales Price: 30 TL Variable Cost: 22 TL Expected Sales: 50 Regular Umbrellas Wide Umbrellas Cannibalization New Customers
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