Vincent De Paul and Goodwill does its thrift business and we really want to make our building much more donor friendly and we will be putting on an addition to have a drive-thru drop off and things of that nature to better serve our donors. In the thrift business donors are the key. The reason big box stores are downsizing or going out of business is because they cannot compete with online business. Being in the thrift business all of our product is unique and we feel this is a good investment.
Statement of the Problem 3. Alternative Courses of Action 5. Data Pertinent to Hi-Valu Proposal 6. Hi-Valu would agree to take title to any bicycle that had been in one of its warehouses for four months, again paying it within 30 days.
BBC needs to examine the viability and profitability of this venture. InBBC sold 98, bikes b. If they accept it, they think they will lose about 3, units of their regular sales volume a year.
What is the expected added profit from the Challenger line?
What is the expected impact of cannibalization of existing sales? What costs will be incurred on a one-time basis only? What are the additional assets and related carrying costs? What is the overall impact on the company in terms of: Return on Sales c. Return on Assets d. Return on Equity 6.
What are the strategic risks and rewards? What should the company do and why? Q1 What is the expected profit from the challenger line? The tasks will still be performed by BBC employees and it is part of their normal tasks.
The amount is also insignificant. Q4 What are the additional assets and related carrying costs?
Profit Added contribution from Hi-ValuViewing this strictly as a short term decision. BBC should accept the proposal of Hi-Valu due to additional profit that it can achieve.
Due to the poor economy, it is likely and more reasonable that the Company should accept the offer. However, we should recognize sensitivity as to other assumptions that might affect this decision in the long run like if the Hi-Valu volume demand would increase after the three year contract, additional sales losses in case current dealers drop the BBC line of bicycles and so on.
Conclusion Accepting the proposal of Hi-Valu will be good for the company as it will provide additional profits for the company in the next 3 years.
This is a good opportunity for the Company to finally enter the mainstream market or department store chains like Hi-Valu.Management Accounting CASE BALDWIN BICYCLE COMPANY OUTLINE 1.
Background 2. Statement of the Problem 3. Objectives 4.
Baldwin Bicycle Company Case Presntation - Download as Powerpoint Presentation .ppt /.pptx), PDF File .pdf), Text File .txt) or view presentation slides online.
Scribd is the world's largest social reading and publishing site.5/5(1). Hi-Valu wanted to purchase the bicycles from Baldwin at a lower prices compared from the wholesale prices of the same bikes sold in the usual markets Hi-Valu wanted the challenger bike to be somewhat different in appearance from Baldwin’s other bikes.
Case Facts Continuation may yield return to Baldwin Bicycle Company.
Baldwin Bicycle. Hi-Valu wanted to purchase the bicycles from Baldwin at a lower prices compared from the wholesale prices of the same bikes sold in the usual markets Hi-Valu wanted the challenger bike to be somewhat different in appearance from Baldwin’s other bikes.
Case Facts Continuation may yield return to Baldwin Bicycle Company. Baldwin Bicycle. Good move.. Gov. Scott Walker is appointing outgoing AG Brad Schimel to a vacancy on the Waukesha County Circuit Court. The move comes a day after Schimel formally conceded the AG’s race to Dem rival Josh Kaul, who won by 17, votes.
Baldwin Bicycle Company Case Solution, The CEO of a bicycle company considering outsourcing the production lines of the company into a producer of low-cost manufacturing. Students must analyze t.