Corey Fink

Touro University International

BUS509-Executive Tools for Decision Makin
Mr! Elias "#ourusto$
Mo%ule & Case' Harry Huffnpuff Glassblowing
(arry (uffn)uff *lass#lo+in
Income Statement (Traditional)
For the Year ended December 31, 2000
(Projecting average rod!ction"#ale# o$ % b!ndle# er &ee')

(even!e or #ale# ()*+0 , % , -0&'#) ) 13*,000
.o#t o$ good# #old
Prod!ct# ()2,+00 , -0) 112,000
/ro## ro$it ) 2-,000
0ther e,en#e# (#elling, general, and admin)
Shiing e,en#e# (-0 &'# , % b!ndle# , )+0"b!ndle) 1*,000
Travel $or #ale# e,en#e *,0%0
1age# (Sam -0&'# , 20hr#"&' , )10"hr) +,000
Total o$ other e,en#e# 30,0%0
0erating income ) (*,0%0)
Income Ta,e# (, 22+) 0
Income be$ore e,traordinar3 item# (*,0%0)
4,traordinar3 item# 0
5et Income ) (*,0%0)
(arry (uffn)uff *lass#lo+in
Income Statement (.ontrib!tion 6argin)
For the Year ended December 31, 2000
(Projecting average rod!ction"#ale# o$ % b!ndle# er &ee')
(even!e or #ale# ()*+0 , % , -0&'#) ) 13*,000
7ariable .o#t#
0erating e,en#e# ()2,+00 , -0&'#) 112,000
1age# (Sam -0&'# , 2hr#"&' , )10"hr) +00
Total variable co#t# 112,+00
.ontrib!tion 6argin ) 23,200
Fi,ed .o#t#
Travel $or #ale# e,en#e *,0%0
Shiing e,en#e# (-0 &'# , % b!ndle# , )+0"b!ndle) 1*,000
1age# (Sam -0&'# , 1+hr#"&' , )10"hr) 8,200
Total $i,ed co#t# 29,2%0
0erating income ) (*,0%0)
Income Ta,e# (, 22+) 0
Income be$ore e,traordinar3 item# (*,0%0)
4,traordinar3 item# 0
5et Income ) (*,0%0)
Break Even ,oint
:rea' 4ven ;nit# < F. = De#ired 5et Pro$it
P > 7.
:rea' 4ven ;nit# < )13,2%0"3ear = )2%,000"3ear
)*+0"b!ndle ? )%*-"b!ndle (%*0?rod!ction@ -?&age#)
:rea' 4ven ;nit# < )3+,2%0"3ear

)11*"b!ndle
:rea' 4ven ;nit# < 329 b!ndle#"3ear
-.
:rea' 4ven Dollar# < F.
1 > 7.
:rea' 4ven Dollar# < )29,2%0"b!ndle
1 > 2%*-"b!ndle
:rea' 4ven Dollar# < )*8,0+8
Su$$ary
For Aarr3 to imrove hi# ca#h $lo&, he &o!ld have to do a $e& thing# di$$erentl32
12 /allerie# are mar'ing ! hi# item# an3&here $rom 100B?200B2 I$ hi# item# are that
m!ch in demand, he need# to #ell them to the gallerie# $or a m!ch higher rice2
22 Shiing i# ab#ol!tel3 'illing hi# income2 Ae need# to $ind a better, cheaer &a3 to #hi
hi# delicate item#2
32 Aarr3 can al#o lo&er SamC# #alar3"&age#2 It #a3# in the ca#e that Sam i# a #emi?#'illed
&or'er2 Da#t time I chec'ed, #emi?#'illed &or'er# &erenCt getting aid that m!ch, not
even in cororation# &here a lot o$ mone3 i# made2
-2 ICm &ondering i$ he reall3 need# to travel $or 2 &ee'#2 I &o!ld thin' i$ hi# item# &ere
#!ch a big hit, he &o!ld be able to ma'e hi# #ale# over the hone2 Thi# &o!ld al#o give
him 2 more &ee'# that he co!ld rod!ce more b!ndle# to #ell2
%2 It al#o mention# in the ca#e that at the end o$ the &ee', !n!#ed gla## i# di#carded2 I &a#
thin'ing that he co!ld rec3cle thi# gla## and !#e it to ma'e #ome more item#2