Essays on Performance in Quioske Limited Net Profit and Sales Case Study

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The paper "Performance in Quioske Limited Net Profit and Sales " is a perfect example of a finance and accounting case study. The aim of the study is to evaluate the company’ s performance as appraised by the trend performance in company’ s net profit and sales and providing conclusion on the implication of this trend to Quioske limited with regards to the suitability of the promotion undertake and if it must be rolled out across the company’ s shopping centre. From our analysis, it is evident that the company’ s investment decision is in the dilemma of whether to invest the $350000 in an investment project a 10% discounting rate compounded monthly or just save the cash in the bank for two years to earn fixed interest of 4.5% per annum compounded monthly. The study will further examine the impact of break-even analysis on the service order in to evaluate the number o subscribers required for the company to reach a point of equilibrium with regards to cost and profits.

The sensitivity analysis will as well undertaken to appraise the effect of the 10% reduction in the selling price and the 35% increase in the number of subscribers on the breakeven point required the new contribution and the new net profit for the company. Appendix 1; Analysis of sales and net profit for the period 2013-2016 It is evident from the table below that that the company’ s net profit and the net asset will depict a reduction from the financial period 2013 ends 2016.

This would imply that the ability of the company to use a net asset to generate more income would be declining and therefore a decline in the net profit.

In this regards, Quioske is not recommended as a triumphant marketing promotion and must not be rolled out across shopping centers   2013-2014   2014-2015   2015-2016   Net Profit 57.9% -117.9% 33.9% Sales 20.9%   18.9% 22.9%                 2014   2015   2016   Asset Turnover 0.77 0.67 0.66 The required sales target level for HR where Quioske must undertake is $186,734,000.The sales level deem sufficient for the company if the business just reaches the level of the market to charge the service and at the same realize the target net profit.

Bibliography

Ehrhardt, M. (2016) Corporate Finance: A Focused Approach - Page 575, New York: Springer.

Madura, J. (2007) International Financial Management - Page 483, London: Cingage Learning.

Sarnat, M. (2007) Financial Decision Making Under Uncertainty, New york: Springer.

Vance, D. (2002) Financial Analysis and Decision Making, london: John wiley.

Vikram, N. (2004) Finance for Strategic Decision-Making: What Non-Financial Managers, New York: Cengage Learning.

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