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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 942 |
Essay's paper body
Looking at the nature of his illness, any unfavorable condition will be detrimental for his health. In contrast to the big show room he possesses, the sales figures have gone down. He is of the opinion that purchasing of the new show room had not been a good decision.
Moving to home based operation:
Since discounts are offered only to those retailers who own their show rooms to meet the overhead expenditure, he will be deprived of any favorable discount...
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Although the total operating expenses will go down by 35% of sales, his sales will be adversely affected by 30%. This business being highly competitive, margin is very low. Customers have become price conscious and very demanding.
Moving the business to smaller show room:
He will do better by selling off his big show room thereby getting $350,000 over and above the mortgage on building ( Sales Price $450,000 - Mortgage on building $98,669 = Cash on hand $351,331)...
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