Please find attached the chapter powerpoint, writing guide detailing the format assignment should be...

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Please find attached the chapter powerpoint, writing guide detailing the format assignment should be written in. The last assignment I requested was not very well done, hopefully this is different. Once again the guide is:1. Determine the Strategic Issues Surrounding the Problem2. Identify the Alternative Actions3. Obtain Information and Conduct Analyses of the Alternatives4. Based on Strategy and Analysis, Choose and Implement the Desired Alternative5. Provide an On-going Evaluation of the Effectiveness of implementation in Step 4.

claires-classic-couture-1-zzx4lrv4.pdf case-write-up-1-dj2dzzw4.pdf

Pallavi · Accepted Answer

Strategic issue
For store 1: Need to complete the Budgeted sales target. Store 1 bonus is based on sales in excess of budgeted sales of $570000.
For store 2: Need to deliver an effective budgeted income. Store 2 will receive bonus based on net income in excess of budgeted income. The company’s net income goal for each store is 12% of sales. The budgeted sales for store 2 are $530000
 So, Store 2 budgeted income will be $63600(530000 x 12%) 	
Alternative action 
For store 1: To increase the sales to get qualify
For store2: To increase sales to earn effective budgeted income
Information obtained
Sales of Store 1 are 40% of sales of District A. Sales at stores 2 are 35% of District A Sales. The cost of goods sold is 42% of sales.
Sales of District A: $1500000
Store 1 Sale: $600000(40% of $1500000), cost of goods sold: $252000(42% of sales)
Store 2 Sale: $525000(35% of $1500000), cost of goods sold: $220500(42% of sales)
Variable selling expenses: 6% of sales 
Store 1: $36000 (6% of 600000), Store 2: $31500 (6% of 525000)
Variable administrative expenses: 2.5% of sales
Store 1: $15000 (2.5% of 600000), Store 2: $13125 (2.5% of 525000)
Maintenance cost should not be below 1 % of sales
Store 1: $7500, Store 2: $5250(1% of 525000)
Advertising Expenses Store 1: $50000, Store 2: $5000
Rental Expenses Store 1: $60000, Store 2: $52500
District Expenses Store 1: $72000, Store 2:

Please find attached the chapter powerpoint, writing guide detailing the format assignment should be written in. The last assignment I requested was not very well done, hopefully this is different....

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