Kesterson - Name Eric Vazquez Section_2 Due Feb 6 2008 Midnight EXERCISE ONE-A 15 pts Baseline Model 3 sales drop 4 sales drop 5 sales drop net

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Name Eric Vazquez  Section __2 EXERCISE ONE-A Due: Feb. 6, 2008 Midnight 15 pts. Baseline Model 3% sales drop 4% sales drop 5% sales drop net sales $1,590,040 $1,542,339 $1,526,438 $1,510,538 cost of merchandis $985,825 $956,250 $946,392 $936,534 gross margin $604,215 $586,089 $580,047 $574,004 variable operating c $178,084 $172,742 $170,961 $169,180 fixed operating cos $378,600 $378,600 $378,600 $378,600 total operating cos $556,684 $551,342 $549,561 $547,780 net profit $47,531 $34,747 $30,485 $26,224 net profit margin 2.99% 2.25% 2.00% 1.74% total assets $685,100 $685,101 $685,102 $685,103 asset turnover 2.321 2.251 2.228 2.205 return on assets 6.94% 5.07% 4.45% 3.83% QUESTIONS 1. Which financial ratio was most impacted by the decline in population? Explain why? Return on assets was affected because you were spending the same amount of money and not  selling the same amount. 2. Which costs are affected by the sales decline?  Explain why? Variable operating costs because your COMS declined. 3. What was the impact of the sales decrease on fixed costs? Explain why? Fixed Cost remain the same. 4. Why does the net profit margin drop at a faster rate than does sales? Because your cost do not drop as fast as your sales 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Name Eric Vazquez    Sec#__2___ EXERCISE ONE-B Due: Feb. 6, 2008 Midnight 15 pts. Baseline Model 1% sales increase 1.5% sales increase2% sales increase net sales $1,590,040.00 $1,605,940.40 $1,613,890.60 $1,621,840.80 cost of merchandis $985,825 $995,683 $1,000,612 $1,005,541 gross margin
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This essay was uploaded on 04/07/2008 for the course MKTG 361 taught by Professor Wachter during the Spring '08 term at Ole Miss.

Page1 / 7

Kesterson - Name Eric Vazquez Section_2 Due Feb 6 2008 Midnight EXERCISE ONE-A 15 pts Baseline Model 3 sales drop 4 sales drop 5 sales drop net

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online