Question 1: Describe the key aspects of Manufactured Homes’ business. Does the company have a viable business?
• Manufactured Homes sells affordable fully furnished and carpeted mobile homes in the southeast of the United States of America. These Potential customers for Manufactured Homes include individuals seeking a single-family primary residence but lacking the ability to purchase conventional housing, retirees, and those wanting a second home for vacation purposes. The company targets individuals in the low-income category, which is a segment of the manufactured homes market in the company’s seven state area. The company’s customers are typically between the ages of 18 and 40, blue-collar workers in manufacturing, service and
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• Gross profit is defined as the difference between Sales and Cost of Sales. The gross margin (or gross profit ratio) expresses the gross profit as a proportion of net sales. The gross profit margin ratio measures how efficiently a company uses its resources, materials, and labour in the production process by showing the percentage of net sales remaining after subtracting the cost of making and selling a product or service. It indicates the profitability of a business before overhead costs. The higher the percentage, the more the business retains of each dollar of sales. So: the higher the gross profit margin ratio, the better.
Calculation gross profit ratio for the home sales: 1986 1985 1984
Net sales $106,095,667 $68,674,779 $30,480,571
Cost of Sales 86,212,901 56,222,412 24,324,851
Gross profit 19,882,766 12,452,367 6,155,720 Gross profit ratio 18.74 %
[($19,882,766 ÷ $106,095,667) × 100] 18.13 %
[($12,452,367 ÷ $68,674,779) × 100] 20.20 %
[($6,155,720 ÷ $30,480,571) × 100]
Calculation gross profit ratio for the finance participation income: 1986 1985 1984
Finance participation income $12,084,108 $9,715,558 $5,221,279
Costs 0 0 0
Gross profit 12,084,108 9,715,558 5,221,279 Gross profit ratio 100 % 100 % 100 %
• The reason for the high gross profit ratio for the finance participation income is that there are little to no costs relating to this income. The amount of gross profit for the home sales is higher
The gross profit margin measures the amount of profits that a company generates from its operations without consideration of its indirect costs. Thehigher thegross profit margin, the greater the efficiency of a company’s operations (Besley & Brigham 2007). It means that the company is generating enough income to cover its operating expenses. On the contrary, a lower gross profit margin indicates that the business is not generating adequate income to cover its operating expenses.
Net Margin is the ratio of net profits to revenues of a company. It is used as an indicator of a company’s ability to control its costs and how much profit it makes for every dollar of revenue it generates. Net Margin is calculated using the formula: Net Margin = (Net Profit / Revenues ) * 100 Net margins vary from company to company with individual industries having typically expected ranges given similar constraints within the industry. For example, a retail company might be expected to have low net margins while a technology company could generate margins of 15-20% or more. Companies that increase their net margins over time generally see their share price rise over time as well as the company is increasing the rate at which it turns dollars earned into profits.
There would still be a net loss in 2006 due to the increase of break-even point, which increased from $7,505 to $8,640.
Profit Margin: -This ratio relates the operating profit to the sales value (Walker, 2009). It tells us the amount of net profit per pound of turnover a business has earned.
Manufactured Homes is engaged principally in the retail sale of new and used manufactured single-family homes and targets individuals in the low income category. Manufactured Homes focuses on the lower end of the market, according to the company this has two advantages:
Manufactured Homes sells affordable fully furnished and carpeted mobile homes in the southeast of the United States of America. These Potential customers for Manufactured Homes include individuals seeking a single-family primary residence but lacking the ability to purchase conventional housing, retirees, and those wanting a second home for vacation purposes. The company targets individuals in the low-income category, which is a segment of the manufactured homes market in the company’s seven state area. The company’s customers are typically between the ages of 18 and 40, blue-collar workers in manufacturing, service and
People’s perspective of housing has changed greatly over time. Starting with the resource, limitations, and availability of everything that is needed. All of these things has shaped and helped form our society and social interactions. Houses in the 1900’s were very small, compact spaced structures. The ceiling heights were low, and the rooms usually weren’t air conditioned unless the house had windows, or the family had enough money to support their family and buy an air conditioner.
The Gross Margin ratio represents the percent of total sales revenue that TCI retains after incurring the direct costs associated with producing the goods and services sold by them. It helps us distinguish, as much as possible, between fixed and variable costs. With a 20%, 15%, or 10% projected increase in sales, for 1996, we calculated TCI’s GM ratio to be 41.85% , and in 1997 to be 41.84%. This means that around 42% of TCI’s sales dollar is available to pay for fixed costs, like its potential long-term debt to MidBank, and to add to profits.
Are you looking to buy a new home? If you're looking to buy a modular or manufactured home, we can help! Ida Grove Homes is Iowa's leading builder of modular and manufactured homes. Not only do we serve residents in the Ida Grove area, we also serve as far away as Sioux City. Whether you need a home in a rural neighborhood or urban district, we have homes to accommodate your lifestyle and design needs. Unlike traditional homes, our homes are not constructed on-site; they are built in a factory, then transported to the work site. Choose from one of our Wisconsin or Shult models.
Mr. Hayslett is currently in the preparation stage of change with this goal. Mr. Hayslett that he loves it at his current housing, however he express his dream is to become a home owner one day. Mr. Hayslett stated he has been saving money monthly and recently being approved for SSI. In receiving SSI Mr. Hayslett already stated that he will have to pay towards his current rent due to an increase in income. Mr. Hayslett stated he will save some of his income towards the down payment of his new home. Wellness Coach Ms. Cain asked what state would you like to plan to own a home in and he replied Virginia or Maryland.
Many companies analyze gross profit margin to assess the health of the business and ascertain the company’s performance creating a product or service compared to the competition (Investipedia.com 2016). This first level of profitability calculates by taking sales minus the cost of goods sold (COGS and gross profit margin are generated by dividing gross profit by sales. The changes in the company’s pricing strategy or industry regulations can impact gross margin. A company needs adequate gross margin to pay for its operating expenses (Investipedia.com 2016).
With low fund rates more Americans are acquiring homes than any other time in recent memory, however the nature of these mass developed homes is dropping. Envision crushing your spirit for a long time to put something aside for your first home and losing it all and more on the grounds that your home succumbed to a blaze. This is a typical illustration of what may happen when a house is inadequately developed. Home developers are neglecting the highly required wellbeing regulations when figuring their financial plans. In the development business time is cash, and when time is an issue presents are frequently made. It is these offerings that are bringing down the guidelines of building inside the home-assembling industry, costing Americans
Gross Profit Margins is a financial ratio which for evaluating a company's core activities of profits. The gross profit Margins has remained relatively static over the three year period, but a little decline in 2007 Gross profit margins is 20.3 but in 2009 became 17.2 it means the 2009 cost will be higher than 2007 cost, the devaluation of the pound is the major reasons, because the sales was risen in this years, the cost also risen.
Gross profit margin = (gross profit for the year ÷ sales for the year) × 100
The gross profit margin of Shangri-LA Hotel is 16.58%, Pan Malaysia Holding is -7.15% and Grand Central is -20.87%. Shangri-LA Hotel has the highest gross profit margin compare with Pan Malaysia Holding and Grand Central. This mean that Shangri-LA Hotel controlled its cost of goods sold very well and can make a higher gross profit.