Rhiannon’s rings | Business & Finance homework help

  

Rhiannon started a new business last year making and selling rings. She buys stones which have been cleaned and coated for $3 apiece (on average). Other materials cost about $2 per ring. Rhiannon sells her rings online for $15 each and $20 each in person. She realizes that her customers could shop online to save money, but they would still need to pay for shipping (flat rate of $10 per order which is about $2 higher than her typical shipping cost). She doesn’t market all her creations online, keeping the best pieces as “treats” for regular customers. In her first year, Rhiannon sold 1,100 rings of which 60% were in person- she estimates that online shoppers buy three rings per order on average, while in-person shoppers buy two per visit. She is looking for feedback on this sales strategy. Also, Rhiannon has heard of cost-volume-profit analysis and she is wondering how things look for her currently (and maybe in the future) from a break-even and margin of safety standpoint. Rhiannon is debating whether to continue working out of a makeshift office/store in her basement as opposed to a store in the city. Her home expenses total $1,000 a month and she estimates her basement takes 40% of the home’s available space. A store would cost $2,000 per month, but grow sales by 75% (80% of the sales would now be in person). If she decides to go in this direction, Rhiannon plans to hire a part-time helper who would produce 1,000 rings per year. Rhiannon estimates that this worker would work 250 hours a year at a rate of $16 per hour. Rhiannon is wondering about the cost[1]benefit analysis of going in this direction. She is also wondering how she might evaluate the helper’s performance once she has actual sales and expense numbers. Also, she wants some insight on the best ways to discuss performance with employees. Rhiannon is wondering if she should also pay the helper a sales commission of $1 per ring sold. This would allow Rhiannon to focus more on production. In addition to producing 1,500 rings a year by herself, Rhiannon is wondering if she can gather and prepare stones for cheaper. Assuming 100 stones per month, she estimates the added fuel expense for this approach would total $150 per month (Rhiannon isn’t sure if other vehicle costs like insurance should be included). Materials to prepare the stones for mounting would total $100 a month. Rhiannon is wondering if she should consider other factors like time spent- she expects to spend 6 hours a month gathering, cleaning, and coating stones. She is wondering about potential pros and cons of producing her own stones, outside of projected cash flows. Rhiannon has been offered the chance to buy a 50% share in the stone preparing business she buys from for $300,000. Rhiannon has inquired about borrowing the sum from the bank and has been quoted a 6% annual rate. She expects the business to maintain its $100,000 annual profit level for the next ten years. Rhiannon also wants to repay the loan within ten years, so she feels like this is an appropriate investment evaluation horizon. She is wondering what some appropriate methods of evaluating this investment opportunity might be. In addition to learning about how you would evaluate the investment and why, she wants to know about other relevant factors which should be considered. Analyze Rhiannon’s business and advise her on the matters raised in the case. Make sure your recommendations are well supported by quantitative and qualitative analysis which ties to the case

Get 20% Discount on This Paper
Pages (550 words)
Approximate price: -

Try it now!

Get 20% Discount on This Paper

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Custom Writings Help is a Quality-Oriented Company in Online Writing as a result of hiring exceptional professionals to execute clients' tasks.

Essays

Research Papers

At Custom Writings Help,We understand the struggle of research paper writing, and that is why at Custom WritingS Help, we are all out to help you. We pride ourselves on having a team of clinical writers. The stringent and rigorous vetting process ensures that only the 'BEST' Writers are chosen for the job. We have highly qualified Ph.D. and MA writers working with us; we equally offer these experienced writers specific bonuses and incentives to make them deliver highly original, unique, and informative content at reasonably low prices.

Admissions

Thesis Writing Service

Worlwide, Many Masters Students are struggling with Thesis Completion. A thesis is likely to be the longest and most challenging piece of work a student has ever completed. However, unlike essays and other assignments, a student can pick a particular interest topic and work on their initiative. Fortunately, we are there for you. At Custom Writings Help, you are assured of an authentic, imaginative, informative, linguistically great, and advantageous thesis that adheres to all your needs. So, why continue considering different writers when you have discovered the best in the field?

Editing

Custom Papers

Not a single student can avoid writing custom papers. However, a total lack of experience, skills, and time makes it very hard to produce a superb writing piece. Therefore, if you are seeking professional help, turn to us. Our specialized and experienced writers compose a variety of model papers, including custom essays, college term papers, research papers, book reports, MBA essays, executive summaries, dissertations, Ph.D. theses, admission essays, and research proposals for college and university students at any level.

Coursework

Essay Writing

Most of the students disregard the critical principles of essay writing and compose papers below sensible guidelines. Therefore, with Custom Writings Help, one should not worry about his/her essay. Our Writers compose informative and engaging content on all complexities and topics. We write meaningful and smart essays while prioritizing all aspects that bring about a good grade, such as impeccable grammar, proper structure, zero-plagiarism, and conformance to guidelines.

Coursework

Coourse Work Writing

Don't let the seemingly never-ending onslaught of writing assignments get you down. If you are looking where to get course work assistance online, the writers at Custom Writings Help are here to assist you with all of your writing needs. We undertake to unique delivery of papers that meet the professor's requirements. The content is proofread, edited, and checked plagiarism before submission to customers. No matter how big or small your work is, we will deliver on time. Try US Now! !

Coursework

Dissertation Writing Service

High-Quality Dissertation Writing Services are rare. They require Ph.D. academicians – not easily found. However, are an exception. The years, time, and resources we have invested in the dissertation world has given us a competitive advantage over others. Choose to come to Custom Writings Help; You will find perfect Ph.D. consultants who have written hundreds of dissertations theses ready to help you. Let our dissertation-writing services help you craft your dissertation, for you are assured we will give you the results.

× How can I help you?