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Published byAileen Atkins Modified over 8 years ago
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By: Adam Locascio, Brandon Niedziela
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Adam Locascio Brandon Niedziela Partnership Chose Bank loan to get us operating Location: Main Street
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"We are dedicated to being loyal and dependant, while making top of the line affordable Suits for today’s generation."
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Specialty Clothing store Main focus was design affordable Suits Make smart management decisions Make profitable sales Encourage employee and customer satisfaction Obviously don’t suck
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Operating/Pricing Bought 200 pants 400 tops Pants sold at $29 Tops sold at $30 Marketing/Staff Promoted through radio Afternoon TV (2x a day) Campus Newspaper Promotion budget $10,000 3 part-time employees $14.00 per hour No extra Loan payment Results Stock price was at $1.00 Profit including dividends was -$16,993
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Operating/Pricing Purchased 6,500 pants and tops Pants: $20 Tops:$12 Marketing/Staff Neighborhood Ad Paper Dropped promotion budget $4,000 Have 4 employees Wage at $9.25 Paid $1 dividend Results Stock price $11.01 Made $8,039 profit for quarter
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Operating/Pricing Purchased 2,000 pants 2,500 tops Pants: $28 Tops: $14 Marketing/Staff Radio/ TV 4 employees $9.75 Results Stock price $21.73 $12,248 profit that quarter
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Quarter 1 Total Gross Margin: $32,386 Total Expense: $49,456 Quarter 4 Total Gross Margin: $58,275 Total Expense: $46,792 Quarter 8 Total Gross Margin: $69,337 Total Expense: $52,268
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Ethical Dilemma Official arranged clubs to buy from us ○ Gave him $400 in store credit Problem Employee Dishonest employee, lay employee off if admitted Purchasing Policies Large Manufacturer asked for name recognition Order 30% of purchases
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Income Statement was useful source Included sales/expenses Decision for next quarter Inventory analysis great for inventory decisions Balance sheet Tells business owner if everything is balanced
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