CaseTutorial_2-_UTSC_Limited-_Question

CaseTutorial_2-_UTSC_Limited-_Question - Case Workshop -...

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Case Workshop - MGT B05 - 2011 Fall UTSC Limited (UTSC) is a medium sized, privately owned company located in Toronto. The main focus of the business is to supply all the merchandize to its chain of 100 franchised stores. All of the franchise stores are individually owned. UTSC is able to obtain low prices due to its significant buying power. UTSC receives a royalty on all sales made by the franchise stores. In order to push sales, UTSC initiated a campaign across all its franchise stores in 2011. The contest awards the store with the highest improvement in income before taxes between 2011 and 2010. The formula to calculate the change is based on (Income before tax in 2011 – Income before tax in 2010)/Income before tax in 2010. The winning store will get a cash prize of $100,000. The contest also requires that all stores need to adopt IFRS in reporting the financial results. Based on a preliminary review of the results, the Calgary store appears to be the winner as they reported a percentage increase of 300%. Their net income before Tax for 2010 is $100,000 and
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CaseTutorial_2-_UTSC_Limited-_Question - Case Workshop -...

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