Hallstead Jewelers

Hallstead Jewelers Case Study | 2003| 2004| 2006| integrality Fixed Costs ($)(In Thousands)| 3,177| 3,240| 4,799| gross tax revenue ($)(In Thousands)| 8,583| 8,102| 10,711| Total Variable Cost ($)(In Thousands)| 4,808| 4,630| 6,228| Number of gross gross revenue tickets| 10,153 | 9,967| 13,063| Sales revenue enhancement Per whole ($)| 845.37| 812.88| 819.95| Variable Cost Per Unit ($)| 473.56| 464.53| 476.77| Contribution circumference ($)(In Thousands)| 3,775| 3,472| 4,483| Contribution Margin Per Unit ($)| 371.81| 348.35| 343.18| fall through still manoeuver in # of Units | 8,544| 9,301| 13,984| Break Even saddle in Sales Dollars ($)| 7,222,841| 7,560,597| 11,466,180| Margin of Safety (%)| 15.9%| 6.7%| -7%| 1) Over the leash old age that we break down in the case, the Break Even Point in gross gross revenue dollars increases. This outhouse be expected as production and expenses increase, even it is all important(predicate) to note the lar ge jump in 2006. Granted, this is after(prenominal) two years during an expansion. The margin of base hit has falld. This measures the risk of investiture in a troupe. In other words, the decline in margin of safety shows that the difference between sales sin little and sales needed to break even standting smaller.

These changes can be attributed to their proficient sales amounting to a value less than the breakeven point in sales. 2) If mediocre prices were reduced 10%, and sales tickets were increased to 14,000 the income of the caller-out would increase. However, even with this change in values, the company is still on a lower floor its breakeven point. The new b! reakeven point, with a 10% decrease in average prices and an increase in units sold to 14000, would be equal to 14,945 units and $10,297,105. 3) Gretchens idea to eliminate sales commissions, morally, whitethorn not be the correct decision because it works in a behavior to motivate the sales people. Without this commission, in the farsighted run sales could decrease because sales people experience a lesser sense of loyalty to the company. In...If you want to get a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay