Sales and Customer Service Costs - 2232 Words

DardenBusinessPublishing:209044 UVA-C-2292 Rev. June 17, 2009 This document is authorized for use only by madelene manu at Douglas College. Please do not copy or redistribute. Contact permissions@dardenbusinesspublishing.com for questions or additional permissions. JOHNSON BEVERAGE, INC. As president and primary owner of Johnson Beverage, Inc. (JBI), Jack Johnson was beginning to realize that retaining long-term customers was becoming a challenge. During a delivery run yesterday, driver Joe Stevens had noticed a competitor’s sales manager talking with the general manager of Saver Superstore, one of JBI’s largest customers. Then, that morning, Johnson’s sales manager, Marsha Ketchum, had mentioned that, during her visit†¦show more content†¦I had Jim pull some numbers together on several of our accounts. Saver Superstore is one of our lowest-margin customers. Take a look.† Jim Thomas in accounting, who was also in the meeting, had prepared a report (Exhibit 1), which Johnson laid on the table for the others to look at. Thomas explained how the accounting group compiled the numbers: For each customer, we just pull the revenues right out of the accounting system. We know what they ordered and what we shipped, and we know what price we charge each customer, so that part is pretty easy. And we know that the cost per case, excluding our customer service costs, is $13.10. So we can multiply $13.10 per case by the number of cases we shipped to get our cost of goods. Then, we subtract our cost of goods from revenues for each customer and get a gross margin. Now, you may remember that we’ve talked about how hard it is to trace our customer service costs to any particular customer. Our customer service costs run about $1.2 million a year, roughly 10% of revenues. To make things easy, we allocate those to each customer based on its share of the company’s total revenues. So if a customer accounts for 5% of our revenues, we allocate it 5% of our customer service costs. Then, we calculate a customer margin for each customer. Johnson looked at the numbers and said: I don’t think we can lower our price to Saver Superstore much more and make any money on this one. And just think, if we offer aShow MoreRelatedActivity Based Costing Assignment1190 Words   |  5 Pagesactivities Mitali Sheth: Active Wear Sales Specialist Cost Pool and Activity description Cost Pool Description 1).Analyze customer needs wants and deliver excellent services It refers to wide range of activities that focus on customer needs, what are they specifically looking for and giving the best suggestion for the outfit they are thinking to wear for any occasion. Develop a high level of product knowledge for the merchandise in the particular department. Cost Pool drivers: per month 2).MeasureRead MoreBusn Simulation Case Essay1676 Words   |  7 Pagesallocating costs based on revenue is not accurately reflecting customer profitability. If you don’t address this problem in a timely matter you are going to lose your most profitable customers while retaining customers who are in fact costing you money. This will ultimately result in bankruptcy or insolvency, meaning the end of Johnson Beverage Inc. I recommend that you adopt an Activity Based Costing method, establish multiple cost pools and their individual cost drivers and allocate customer serviceRead MoreWe Are A Stylist App1682 Words   |  7 Pageswith the new trends, but don’t have the money or time, to do so. Customers will get to choose their own stylist from our portfolio who will then personally pick out clothing for them based on the customer’s style and preferences. 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Customer RelationshipRead MoreKanthal Case965 Words   |  4 PagesKanthal specializes in production and sales of electrical resistance heating elements and is headquartered in Hallstahammar in Sweden. In 1985, Kanthal had about 10,000 customers and 15,000 items produced with sales revenue of SEK 850 million between 1985-87. Kanthal consists of three divisions: - Kanthal Heating Technology - Kanthal Furnace Products - Kanthal Bimetals It has manufacturing facilities in Sweden, Brazil, UK, USA, Germany and Italy. In 1985, Kanthal had a change in leadership with

College Athletes Financial Compensation - 4427 Words

Abstract The purpose of this research paper is to persuade a National Collegiate Athletic Association (NCAA) panel, to include its president Mr. Mark Emmert to modify the current NCAA amateurism by law 12.02.1 making it feasible for college athletes to receive financial compensation. The primary issue with the current regulation is that because of the rule many student athletes are living in poverty like conditions. The current by law is also affecting various aspects of domestic and International students ability to continue to meet eligibility requirements. In the past ten years college athletics as a whole has grown exponentially and it’s clearly evident by the revenues the NCAA and it’s schools are generating. These additional†¦show more content†¦Those that argue that college students are not receiving fair treatment would argue the point that these amateur college athletes are not truly as fortunate as the NCAA portrays. There is no doubt that many under privileged young adults are indeed provided an opportunity to pursue a lifelong dream, yet it’s not as obvious when some of the statistics are examined. Though the NCAA and it’s institutions of higher learning do issue hundreds of thousands of scholarships throughout the year, they only make up a minuet percentage of college students, in fact in the same in the same time period of 2003 to 2004, â€Å"the N.C.A.A. institutions gave athletic scholarships amounting to about 2 percent of the 6.4 million athletes playing those sports, making that select group of athletes barely register statistically among the 5.3 million students at N.C.A.A. colleges and universities† (New York Times, n.d.). If the intent is to provide more opportunities to these underprivileged young adults then we all have a moral obligation to review not only how scholarships are awarded, but how many, as well as how they benefit the student athletes throughout their college years. The second aspect of the debate is one from an economic perspective, which is theShow MoreRelatedCollege Athletes : The Masters Of Multitasking1305 Words   |  6 PagesCollege athletes with out a doubt are the masters of multitasking. Not only being able to play there individual sports at a high level but also finding the time to dedicate to there academics and achieve relatively decent grades. The amount of time that they dedicate to there university out on the game field and in the classroom should be deserving of a reward. Some argue that the problem would be that not every school can afford to give college athletes a decent compensation in every sport; forRead MoreCollege Athletes : Patrons For The Ncaa1088 Words   |  5 Pages College Athletes: Patrons for the NCAA The NCAA is a money-generating monster that disregards college athletes’ financial well being. How can we stand back and let the NCAA steal money from the hard working athletes that provide it? Take this for example: Philip is a landscaper that works hard day in and day out mowing yards. He is not always perfect, and makes the occasional mistake. Even though he make mistakes, he is good at what he does. Now imagine if Philip earned a very small amount ofRead MoreShould College Athletes Be Paid? Essay1519 Words   |  7 Pagesof thought currently cycling throughout media circles is the definition and compensation of college student-athletes. Some colleges and universities provide student-athletes with complete or partially-paid tuition expenses, lodging, books, and other educational incidentals while the athlete plays sports at their institution. Many advocates for fair market compensation for college athletes argue that some Division 1 athletes â€Å"labor under very str ict or arduous conditions, so they really are laborersRead MoreThe Problems With Paying College Athletes1120 Words   |  5 Pages College athletics is a very diverse organization involving a lot of students, mainly as the players, and non-students such as officials, coaches and others. The leading governing body for college athletics is the National Collegiate Athletic Association, NCAA. College sports is itself a big industry involving sponsorships, TV networks, endorsements, retail products and marketing. But in spite of it being a big business, the players are not compensated for the work they deliver. This opens up twoRead MoreThe Problems With Paying College Players1295 Words   |  6 PagesColleges are infamous for pouring millions upon millions of dollars into their sports programs, except of course, when it comes to paying athletes. Because college athletes are not allowed to be paid in accordance to federal law while they simultaneously create large sums of revenue, there has been a heated debate that Kristi Dosh and Mark Cassell readily provide contrasting evidence for. In Dosh’s article, â €Å"The Problems with Paying College Players,† she argues that it would not be fair to pay collegeRead MoreShould College Athletes Be Paid?986 Words   |  4 PagesPaying the College Athlete The college athlete has steadily grown in popularity in the United States over the span of the past decades. Monetarily speaking, this increased publicity has been extremely beneficial for National Athletic Association (NCAA) and all the colleges involved in athletics which has sparked the dispute of whether or not the athlete should be paid for their hard work and dedication on the field and to their school or if the athletic scholarship is more than enough. College athletesRead MoreThe Current Position Of Intercollegiate Athletics1653 Words   |  7 Pagesprograms that pay their athletes to attend the school. Therefore, in no other country will one find quite as much debate as to whether or not these athletics programs should continue to be affiliated with the colleges and universities they represent, particularly if the primary objective of colleges and universities is to educate their students (Beyer, 2000). Moreover, the role of amateurism and whether or not student-athletes should be paid is a controversial issue among college sport fans and scholarsRead MoreThe Ethical Approach Of Bob Bowlsby1484 Words   |  6 Pagesbasketball student athletes to receive a salary while female and male student Olympic sport athletes who partake in swimming, wrestling, and lacrosse, for example, do not receive the same benefit (Strickland Moody, 2014, p. C-422). The justice approach is based on fairness, equity, and impartiality as it derives from Aristotle who articulated that equals are to be treated equally and unequals unequally (Rao, 2010, Velasquez et al., 2015). Bowlsby is expressing that all student athletes are equals asRead MoreThe Consequences of Paying College Athletes1240 Words   |  5 Pages(â€Å"Amateur†). Amateurism is the concept that athletes should compete without payment. Until recently, playing collegiate sports as an amateur was thought to be a noble calling. As time surpassed, college sports became a commercialized industry, generatin g billions of dollars in revenue. When this became apparent, the implementation of athletic scholarships became more relevant. The athletic scholarship seemed to be a more than fair way to delight athletes with some sort of incentive to ensure theirRead MoreEssay on College Athlete: It ´s Time To Pay Them1722 Words   |  7 PagesPaying Them is The Answer In college sports athletes perform on the big stage in front of thousands of people every week and receive no money for their performances. These athletes receive no money for their performance because it is made illegal by the NCAA for any student athlete to receive any type of reward for their performance. In the last five years there has been a heated debate on whether the NCCA should start paying college athletes. People responded to this situation with mixed views

Approaches to Multicultural Counseling free essay sample

A discussion of the Family Systems theory and its use in multicultural counseling approaches. This paper examines the multicultural counseling approaches used in the application of the family systems theory. Family Systems theory is defined, and three counseling approaches that utilize the theory in a multicultural context are reviewed. They include family therapy, family literacy and cross cultural marriage workshops. Family systems theory asserts that people can change behaviors if they are aware of the impact current and historical family behavior has on the definition of his or her choices. In the context of the family systems theory the word Family may be composed of the immediate family that the person presides with, the extended family of relatives and friends, and the community in general. (Bowens Family Systems Theory 2002, 1) The family systems theory was pioneered by Dr. Murray Bowen, and has many characteristics. First and foremost the theory is a way of understanding present situations in terms of past relationships. We will write a custom essay sample on Approaches to Multicultural Counseling or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The theory seeks to understand the entire family as an emotional unit composed of linked relationships that have existed over different generations. Family system theory claims that an individuals behavior is directly correlated to how that individuals family functions. (Bowens Family Systems Theory, 3)