User Account

All Pages

Identify the primary cause of the shortfall revenue or costs

Assignment Help Corporate Finance
Reference no: EM13204066

Imagine that for the second quarter in a row, profits are down at Waterfall division. Division Management budgeted $250,000 in profits for the 2nd quarter but actual results were only $197,000 in profits. The division management insists that the budgets were developed realistically but admits sales were down. The division has been under pressure to improve profitability. Corporate Management has asked you to identify the primary cause of the shortfall - revenue or costs?

Address the following as you develop your answer to Corporate.

  • How will you approach your analysis of the situation?
  • What variance analysis and / or trends would be helpful to evaluate?
  • What are three possible situations that could be the cause for the shortfall in profits?
  • What actions would you recommend for these three possible situations?
  • What recommendations would you make to management to improve the budget process for next year?

Reference no: EM13204066

Questions Cloud

Will it automatically be symmetric to the origin : If an equation is symmetric with respect to both the x-axis and the y-axis, will it automatically be symmetric to the origin?
State what is the area of the largest possible norman : so that the diameter of the semicircle is equal to the width of the rectangle. What is the area of the largest possible Norman window with a perimeter of 20 feet
The total amount of tax revenue raised is equal to what : Assume that the demand curve is given by the following: p=20 and the supply curve is given by Q=p-5. If the government puts in place a tax of 5 that must be paid by the seller the total amount of tax revenue raised is equal to what
Explain how to compute the number of functions : Explain how to compute the number of functions from a k-element set K onto an n-element set N by using multinomial coefficients.
Identify the primary cause of the shortfall revenue or costs : How will you approach your analysis of the situation, what variance analysis and / or trends would be helpful to evaluate and what are three possible situations that could be the cause for the shortfall in profits
How many functions are there from a k-element set : How many functions are there from a k-element set K to a set N = {y1, y2, . . . yn} so that each yi is the image of ji elements of K?)
Find the displacement of the particle during the given time : The velocity function (in meters per second) is given below for a particle moving along a line. (a) Find the displacement of the particle during the given time interval.
What is the quantity of labour supplied : a labour market in which the supply curve is given by: w= 10 + Ls (where w is the wage rate and Ls is the quantity of labour supplied). Further, assume that the demand for labour is given by w = 100 - Ld (where w is the wage rate and Ld is the qua..
What is the least number of cups of lemonade they need : Carolyn and kim are selling lemonade this fall. It costs $0.10 to make each cup of lemonade. They are going to sell each cup of lemonade for $0.30. What is the least number of cups of lemonade they need to sell in order to collect $10.00 more than..

Reviews

Write a Review

Corporate Finance Questions & Answers

  Impact of the global economic crisis on business environment

This paper reviews the article of ‘the impact of the global economic crisis on the business environment' that is written by Roman & Sargu (2011).

  Explain the short and the long-run effects on real output

Explain the short and the long-run effects on real output, price, and unemployment

  Examine the requirements for measuring assets

Examine the needs for measuring assets at fair value in accounting standards

  Financial analysis report driven by rigorous ratio analysis

Financial analysis report driven by rigorous ratio analysis

  Calculate the value of the merged company

Calculate the value of the merged company, the gains (losses) to each group of shareholders, NPV of the deal under different payment methods. Synergy remains the same regardless of payment method.

  Stock market project

Select five companies for the purpose of tracking the stock market, preparing research on the companies, and preparing company reports.

  Write paper on financial analysis and business analysis

Write paper on financial analysis and business analysis

  Intermediate finance

Presence of the taxes increase or decrease the value of the firm

  Average price-earnings ratio

What is the value per share of the company's stock

  Determine the financial consequences

Show by calculation the net present value for the three alternatives (no education, network design certification, mba). Also, according to NPV suggest which alternative you advise your friend to choose

  Prepare a spread sheet model

Prepare a spread sheet model for the client that determines NPV/IRR with and without tax.

  Principles and tools for financial decision-making

Principles and tools for financial decision-making. Analyse the concept of corporate capital structure and compute cost of capital.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd