Hallstead Jewelers Case Study

Luc-Felix Charles Ekono Hallstead Jewelers Due: 9/30/2012 Gretchen Reeves and Michaela Hurd are the managers of Hallstead Jewelers and their stores. Once their civilise passed away in 2002 they were given these titles. With profit s humiliatedly minify they knew something must be done to trade that. They relocated and change magnitude the size of the store while updating its image. This retrieveed in 2004. This took near all of 2005, so they opened again in 2006. That class they received a loss in electronic network income of $316,000. To dissolve the problems they had they gave a list of question for their accountant to externalize egress for them. First I had to find the break- sluice points for create blocks and dollars and see how the b each(prenominal) of gum elastic had changed and what caused that change. In endanger 1, 2, and 3 you can see my information for the break-even points and how I piece them. After calculating the break even points I in stal that each year they were increasing. This happened because the fixed address increase each year while the parting margin decreased object for 2006. In 2006 the fixed cost was at its highest due to a new rent that was larger and more than employees. The margin of safety, which is in break 4, was already extremely low in 2003 at 15%. Then it was 6% in 2004 and 7% in 2006.

It has decreased and obviously other things in the business gather up to change like gross revenue per building block to increase it. The nigh question was if they decreased price by 105 and increased sale tickets to 14,000, if there income would increase. After work this, in exhibit 5, I found that this ! would not of helped in 2006. They would be in more debt if they had done this, they would have confounded $379,197. With the price reduced the break-even points for units and for dollars would have increased due to the contribution margin per unit changing. Next they wanted to see what would happen if they took away sales commission and what would happen to the breakeven volume. If you increased the salaries aside what they would...If you want to give way a full essay, order it on our website: BestEssayCheap.com

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