Karake, Inc. management
To improve quality and reduce the number of defective
ErgoBeds produced, Karake, Inc. management has hired 5 new
quality control personnel. Remember from the previous
narrative (Project 1) that the company has recently been
experiencing increased demand for its ErgoBeds Line and was
forced to increase the number of shifts in its factories which led
to a problem in quality and increase in the number of defectives
and returns.
Due to increased demand, the company opened new
production facilities and hired new production managers as well
as more employees for customer support. Given the negative
goodwill caused by the problem with production quality, Karake
Inc. has decided to offer customers quantity discount on the
ErgoBeds Line. Discounts are based on the quantity ordered as
per the “Discount_Table” in range R1:S7 on the Transaction
Sheet of the Excel data associated with this project (Project
2_Data_Winter 2022).
What the “Discount_Table” indicates is that if the order is
less than 33 beds (X<33), then the customer will not get a
quantity discount; if the order is equal to or more than 33 but
less than 83 (33<=X<83), then the customer will get a 2.7%
discount, etc.
Use the data in the Transaction sheet to answer the following
questions:
1. During the ordering process of the Ergobeds, some customers
have entered in their addresses with minor typos. Their most
common errors are extra spaces and incorrect capitalization. Use
the appropriate Text function(s) in column M to revise the
addresses. (0.5 point).
2. Calculate Revenues of each sale transaction in column J and
create a formula using SUMPRODUCT to get the Total Revenues
in cell R12. Take returns into consideration for both calculations
(quantity is computed net of returns). (1 point)
3. In column K, calculate the discounted price based on the table
in the R1:S7 range. (0.5 points)
Karake, Inc. is planning to bring to market a new line of
products called ErgoChairs. Zaid Smart, the company’s financial
analyst, needs to determine if this is a worthwhile investment.
Zaid estimated the project’s initial capital outlay at $9.7 million,
which will cover the cost of renovating a proposed
manufacturing facility that will be leased, and the cost of new
machinery to produce the new product line. Zaid has listed the
projected returns over the next 11 years.
The expected annual cash inflows from the project can be found
on the ErgoChair Evaluation sheet of the Excel file.
One critical element that is left to be analyzed is the funding
required to produce the ErgoChairs. Before making a final
decision to go with the project, Zaid must evaluate the proposed
investment to determine if it is economically feasible. Khiem
Williams, the VP of Finance, was tasked with the job of exploring
several funding scenarios and generating cash flow projections
to be provided to management before a final decision is made.
Based on Khiem’s analysis of several financing options for the
ErgoChairs Line, he decided to recommend the following option
to finance the initial capital outlays for this project:
“Fund the project by borrowing the money from Hogan Bank.
The bank currently charges an interest rate (APR) of 9.5 percent
compounded annually and requires the payments to be made
annually over the next 11 years. Given that Karake, Inc. has been
doing business with Hogan Bank for the past 30 years I am
confident the loan will be approved.”
4. Use a simple Excel function to calculate the expected Net
Present Value of the ErgoChairs investment. Show your answer
in cell E5 of the ErgoChairs Evaluation Sheet. (0.5 Points)
Refer to the Financial Analysis sheet to complete questions 5-8.
5. Use a simple excel function to compute the Annual Payment
in cell B5. (0.5 Points)
6. Complete the Amortization Table (C11-H22). Use simple excel
functions to complete IPMT & PPMT columns (1 Points)
7. In cell F25, use an Excel built-in function to compute the total
interest paid over the last 6 years of the life of the loan. (0.5
Points)
Sample Solution
ough monetary measures are probably not going to catch completely the many components of authoritative execution, carrying out an assessment framework with an excessive number of measures can prompt "estimation breaking down".
The Balanced Scorecard (see Appendix two) is a straightforward lattice that drives us to inspect how every one of the segments act in every one of the squares (reason, assets, empowering process, future). Simultaneously, you can likewise evaluate individual execution against similar rules. It not just summarizes what we need to do, it does it in a way that guarantees everybody in the organization knows what they are attempting to achieve and what is significant in taking care of business, this is obviously recognized in Appendix two, in any case, the reasonable scorecard writing gives little conversation of the scorecard\'s part in remuneration choices, notwithstanding the way that most of adopters utilize the scorecard for this reason (Towers Perrin, 1996).
Right now the public area associations across the UK have been liable to cuts in government spending, this incorporates the Defense where the public authority has diminished its powers by 7,000 work force, a significant number of these were mandatory redundancies. Maintenance inside the military is currently in danger, but the MOD is striving to handle these issues.
3. Learning Outcome 2
This should meet the Assessment Criteria's 21, 2.2, 2.3 and 2.4 dependent on the fundamental outside relevant elements affecting on associations and the HR work.
3.1 The Market and cutthroat settings of associations.
Inside the eternity evolving environment, both public and private areas need to adapt to tempestuous and changing outside settings. These are driven by rivalry, change plan and the new declaration of BREXIT. In 2010 the public authority distributed the result of the Strategic Defense and Security Review (SDSR) setting out the way that we will convey the needs distinguished in the National Security Strategy. In the declaration it was concluded that the public authority would diminish its powers by 7,000 warriors, these work cuts were arrived at well ahead off the 2018 objective. Service Defense figures show that there are presently 81,700 full-time administration people in the Army, down from 102,260 out of 2010, Atkinson, E. (2015). Inside the Armed Forces the MOD made a progression of tranches what separated the excess stages, so as not to inundate the military with extraordinary quantities of misfortunes in a single serge.