Goods Services - 1178 Words

Homework #2: Goods, Services, and Operations Management Written By: Tamara Ellis Prof. Samuel A. Garwon MGMT 480 – 002 March 6, 2013 1. Explain why a bank teller, nurse, or flight attendant must have service management skills. How do the required skills differ for someone working in a factory? What are the implications for hiring criteria and training? Service-providers need technical/operations skills plus human interaction and marketing skills. A bank teller, for example, must be able to complete many types of financial transactions and operate the computer and associated software. The teller must also interact with the customer in a pleasant way, be in a location convenient to customers and market other financial services†¦show more content†¦She tells us to wait for our number to be called. After 30 minutes of waiting, our number had still not been called, and the last number called was 36 (6 people ahead of us). She had now exceeded the approximately waiting time and had not given us an update since, I once again asked the waiting time and she then said 15 to 20 minutes. This was an outrage to my family and me because that would make it a total of about an hour before we would be seated and this was far more than we originally anticipated. We explained to the hostess that if we had known it would be an approximately a n hour wait from the beginning we could have possibly made other arrangements to another restaurant. I believe the organization could have handled this much better by: having an accurate approx. waiting time, better customer service, upgraded technology, active managers, and ample amount of busboys and waiter/waitress for their busy nights. In this particular situation, operations management would have helped by forecasting: considering the time and day of operation, and setting forth plans for either a busy or slow day. Using supply chain management: by calling enough workers in to work. Technology Selection: by investing in a screen-touch seating application and/or waiting devices that ring or vibrate the time of their seating. Also by determining the best employees for each position and providing the best types of customer’s needs. 5. Interview a working friend or familyShow MoreRelatedThe Price Of Goods And Services935 Words   |  4 PagesThe way companies price their goods and services depends heavily on many different factors. Throughout human history, goods and servi ces have always had intrinsic value to people, and in our day and age this is no different. Shopping, however, has changed quite a bit due to many different reasons. Prices of goods and services are now changed by companies based on psychology, supply and demand, and government influences to adapt themselves to the modern world. The most personal of these three factorsRead MoreGood Customer Service736 Words   |  3 PagesGood Customer Service Good customer service is all about bringing customers back. Due to intangibility, the customers can’t feel the service, and thus causes lack of confidence of customers to the services. Therefore, the business should ensure that they provide a good, nice, friendly and professional service to the clients. The essence of good customer service is forming a relationship with customers – a relationship that that individual customer feels that he would like to pursue. The staffRead MoreEffects Of Money Activation On Level Of Support For Government Goods And Services Programmes And Privatization Of Public Goods Services1698 Words   |  7 Pages Effects of Money Activation on Level of Support for Government Goods and Services Programmes and Privatization of Public Goods and Services Shalini Pandaram 48555592 Psychology Department University of Canterbury Abstract Money has a huge impact on us as individuals, changing our behaviour and the way we view others. In order to see how great of an effect money has a study was conducted involving participants recruited from Psyc106 classes. Participants partook in an experimentRead MoreComponents Of Good Customer Service1149 Words   |  5 PagesIntroduction In today’s market, it is important for us to take good care of our customers and show cause for potential customer to allow us to service their needs. In the small town of Morris Run, PA, ‘The Store’ offers convenience items, a dine-in and take out menu, as well as e-commerce products, including several specialty products sold at ‘The Store’. ‘The Store’s’ customer service policy outlines and includes store protocols, which employees must follow to deal with customers, in a mannerRead MoreGood Customer Service Essay1724 Words   |  7 Pagesvan and refrigerated service which is the most demanding by the customer .AET transport has rental and leased agreement with some of the largest trailer leasing and rental companies in an Australia. The main purpose of the AET Company is providing good customer service and supplies their goods on time. AET transport takes pride in safety and compliance. They have mission to provide and impro ve their customer’s service. Mission statement:- Transportation Services mission is provide toRead MoreGood Consumer Service: Company of Choice1032 Words   |  5 Pagesbusiness the main key is to have good customer service. The standpoint for any salespersons is to how they present themselves in the company. Companies that show extremely good customer service will normally become the company of choice because with good customer service comes with more customers from other companies. With good service support it is the easiest route to success in building a strong company with custom relations. When a customer sees that good service is provided they will most likelyRead MoreThe Art Of Getting Good Service760 Words   |  4 PagesThe art of getting good service When was the last time you walked into a department store and stood at the counter waiting to be waited on? Two sales associates were in clear view, chatting away about their personal lives. Trying to be patient you stood quietly waiting for them to notice you and offer you a helping hand. After a while, you started to think, â€Å"Do they see me, or are they still on break?† â€Å"What’s going on there?† Later, you get annoyed in this situation; will you start off on theRead MoreGood or Bad Customer Service Essay1102 Words   |  5 PagesA large part of being a good service provider is ensuring customer convenience. Study findings show that strong leadership systems focus on customers, motivate employees, and implement their customer service vision. They also focus great attention on gathering the information needed to track customer satisfaction, and employees overall performance. Customer service should be designed and delivered seamlessly from the customers point of view. Customer-driven operations lead to success. DecentralizedRead More Principles of good customer service Essay1011 Words   |  5 PagesPrinciples of good customer service It is very important to give excellent customer service when out in resort working as a rep. customer service can be given by one person or alternatively it can be given out as a team. This is to ensure that the customers get the best from there holiday, and so that they build a rapor with you to gain trust for them to come back time and time again. Seeing the customer happy also benefits you as a rep and gives you good job satisfaction. There are manyRead MoreGood and Bad of Customer Service1142 Words   |  5 Pagespositive and negative customer service experiences. Customer service (ch.1 pg. 6) can be defined as â€Å"The ability of knowledgeable, capable, and enthusiastic employees to deliver products and services to their internal and external customers in a matter that satisfies identified and unidentified needs.† In other words, it is the ability of a company and its employees to supply their customers’ wants and needs. Some organizations have well developed customer services departments, while other are lacking

The Compatibility of Freedom and Necessity in Marx’s Idea Free Essays

According to Sokel, he refers to this as an intrinsic drive that comes from someone. One must work hard and be determined on everything that he anticipates to realize. He should not entirely depend on the external forces or commands from external sources to make him go through. We will write a custom essay sample on The Compatibility of Freedom and Necessity in Marx’s Idea or any similar topic only for you Order Now He highlights the Marxist idea that someone only appears to be a true human being who can be recognized in the society when he can be positively rewarded by the works of his hands. Whenever he is imposed by the economic necessity, the work cannot actually make him became alienated because he would be engaged with other people, which is already an agent of socialization. He does not become himself as an individual; rather, he is alienated from his humankind. In this short analysis, the metamorphosis, the protagonist might become a wrong person. When Gregor works as a salesperson, he has a lot in his mind. Things might not be adding up according to him because he has to travel long distances to get customer, he has to pay his bills; he also has to take good care of this family. All these burden mounted on him does not make him happy. For this reason, he has to remain alone and except himself from the company of many. The paper will look into this issue through citation of Kafka`s depiction on the way in which the protagonist react to the idea leading his family into the misfortune. He eventually suffer the guilt of conscience which by all means dismisses Marx`s assertion that loss of humanity can also come from external sources like work mates and family members. From the journal, Palvos states that dangling among the vicissitudes in the world without harmony accomplishes a great blow to one`s moral identity. In life, every turn a fatality that has nothing to do with an incorrigible personal law and ethical countenance. If this happens, ones hope and determinations are all shuttered and his life remains without a meaning. Gregor`s self alienation and humiliation is suggestive of the modern dilemma of human beings in the technological period of machines who brute facts and information systems. This analysis points through and through to the reality of material existence and the possibilities of its fall, consequently moves toward the complete subversion of an ethical universe. From a responsible man who could take good care of his family to someone who is mentally tortured and only feels comfortable when he isolates himself from other people. Gregor’s metamorphosis from a civilized man into a horrific and monstrous vermin, an instinctual underworld character with an almost automatic nature, and finally to a simple bit of matter, turns him into an antagonist who upsets all the instincts of life. Indeed, Kafka’s criminal world vermin gives rise to a deep and stifled impulse in modernity, to the gradual spiritual death of the human, a metamorphosis par excellence of the human substantiate that overrides all instinctual and hermeneutical bound. When the mental capability of human being fails to reason, he is recognized as a worthless being that is at par reasoning with all animals. Henceforth, the humiliated modern human -uprooted beyond bound. When one is stripped of all ethical purposefulness, he no longer possesses the moral entity given to thinking and questioning. He is called to de facto accept and obey the mastermind of pretence techno capital reality, and, the geophysical enterprise of its dully respect. Positive factors of freedom sometimes blind many people. Myamoto emphasized on this statement by saying that most of the rich and modernized societies today have a lot of freedom and they enjoy it extremely without sensing the side effects associated with the freedom. The societies have failed in looking at the two sides of the coin. He goes by saying that alienation is a side effect associated with the freedom which most of us have failed to look into with a lot of concern. He support his claim by citing Enrich Fromm`s concept of alienation. He says that the relation of human being is very pivotal especially to those who are alienated. Those alienated should be put close to other people. Being alone to people is not enough, but it should be in all dimensions, through feelings, thoughts and even actions. This source identifies alienation as one of the side effect of identification of human being. Kafka`s protagonist, Gregor is very potential and cooperative in providing to the family. He shows all the ability of taking care of his parents. However, at some points, he alienates himself from the family, an aspect of perpetuated by the ended gratitude and concordat he previously got from them. Because of the isolation, he cannot be identified as someone who is financially stable and can take good care of the family. According to Nicolae, he makes his argument to the modern family where one appears to be insignificant or cannot realize his life dreams. He argues that the fact that Gregory stays benevolent makes him appear someone who is finally alienated and spends most of his time alone even without the family knowing his whereabouts. Gregor is portrayed as one who cannot be recognized in the society and he struggles with his loneliness at work place where he decided to seek new identity. At one point, the protagonist identifies himself with a creature which does not make him associate in the light; he rather has to hide himself in the darkness. Actually, being rejected makes one loose his value and becomes worthless before other people. In this regard, this source proves resourceful in identifying the change in Gregor which is from metal to physical level because of the challenge he gets while dealing with his family. From the outlook, Gregor does no change his moral standing irrespective of all the humiliations that he comes across. According to this source, morality is a factor in Gregor`s alienation after being neglected by the family. The social strength which is acquired by the family proves a lot of dehumanization as they draw the attention they originally had for Gregor. According to Yaron, maintaining culture in the society is very important. Culture helps in preserving the codes of conduct that governs good stay in the community. One who alienates himself from the culture has no positive contribution to the society. According to him, Gregor commits no crime towards anyone only that he was not true to himself and there was nothing that amazing that could make him alienate himself the other people. The split that he experiences in his personality, his deepest struggle and abandoning the culture includes everything taking place within him. However, most people who do not experience such things do not know about it. They can either choose to ignore or deny it. Gregor out rightly bears no illusion about the metaphysical chasm that encircles him and the isolation it brings from those around him who are his equals but do not know it. This gulf is not alienation from his family and the hypocrisy of his relations to them both prior and after the metamorphosis, but is the isolation where a disillusioned man who awakens to a radical awareness of his own mortality suffers the awful experience of separation from others. The separation is actually against the culture. The culture does not allow one ton separate from others irrespective of the situation, however, this takes place because of what he feels in his innermost heart. His corporeity points to his mortality which makes the inhuman world his master. Gregor’s inhuman world is as incomprehensible to human reason and sensibility as is death; it is far more human and humane than the reality of the people surrounding him who have denied their own mortality. Following the customs of our world, and according to the laws of habit and self-complacency, it would be beyond the bounds of scientific innovation for us to wake one morning and find ourselves transformed into colossal insects. Grego`s metamorphosis touches a deep, unappreciated, and anguishing reality in life. This is nourished by sources which are deeper than those of cogent reflection and scientific knowledge. Our personal existence can sometime lead us to horrifying and most anguishing discovery. This points out that the transitory nature of our lives and places can absolutely have great demand on our moral nature to reconcile with its true temporal dimensions. In this plinth, Gregor is doomed from the beginning. His far-reaching transformation into vermin is just physical and irrevocably. Later, it fully becomes impossible for him to reconcile the radical discontinuity between his newly discovered physical structure and his prior human self. The sudden awakening to the devastating discovery of his metamorphosis even brings backfire of his daily expectations with a terrifying inability not to achieve them again. His former self remains qualitatively unchangeable, indeed throughout the story is mostly baffled helplessly trying to adjust to radical change. Despite the tremendous effort that he puts, he ultimately finds it impossible to cope or bridge the gap between an unbridgeable void, which makes his insect like physical structure and the retaining of meaningful human identity. How to cite The Compatibility of Freedom and Necessity in Marx’s Idea, Papers

Financial Management Evaluating The Investment Opportunity - Sample

Question: Discuss about the case study Financial Management for Evaluating the Investment Opportunity. Answer: Introduction: The overall study mainly depicts the financial analysis, which could be used by Fanny to open a Choc-O-Lay branch in US Chicago. Furthermore, the novice effectively analyses the entire cost requirement, which could be conducted in the new business for smoothly running all the operations. Moreover, the study effectively evaluates the breakeven analysis for the new proposed business, which is essential for its survival in competitive market. Furthermore, the breakeven analysis could help Fanny depict the required amount of sales, which could be generated each month for the survival of the business. Brigham and Ehrhardt (2013) mentioned that evaluation of breakeven analysis mainly helps businesspersons to understand the sales needed for continued growth of the company. In addition, the study also evaluates and analyses profit and loss statement of the new proposed business for the first year. This analysis could eventually help Fanny understand the first year income, which could be generated after opening Choc-O-Lay branch. In this context, Brigham and Houston (2012) stated that evaluation of projected profits mainly help investor to make adequate investment decisions, which in turn increases their overall return on investment. On the other hand, Oikonomou et al. (2012) criticises that without adequate research, projected profits from an investment could eventually be reduced and hamper the investment capital. In addition, the study also evaluates and prepares a balance sheet, which could be reviewed by Fanny to understand the overall asset accumulation needed in the first year of incorporation. The study also helps in depicting the overall monthly cash flow that could be generated from first year of transactions. In addition, cash flow evaluation could also help in depicting the overall cash expenditure that might be conducted during the first year of incorporation. Moreover, with the help of sensitivity analysis the overall evaluation of different activities could be estimated. On the contrary, Mousavi et al. (2013) mentioned that sensitivity analysis could lose friction during an economic crisis, which might negatively affect operations of the new business. Furthermore, the novice effectively prepares a discounted cash flow statement, which could be used by the Fanny to evaluate the profitability from investment. According to Call et al. (2013), discounted cash flow mainly helps in depicting the time value of projected profits generated from business plan. Nevertheless, Farshadfar and Monem (2013) criticises that discounted cash flow does not accommodate change in inflati on rate, which might increase overall cost and hamper profits of the new business. Analysing the Breakeven Analysis for the proposed business: Figure 1: Depicting the break analysis for the proposed business (Source: As created by the author) The overall figure 1 mainly depicts the breakeven analysis for the proposed new business. In addition, with the help of selling and cost prices analysis the overall number of units that could be needed for the survival of new business can be effectively evaluated. Alhabeeb (2012) mentioned that with the help of breakeven analysis the investors are able to determine the overall limited number of sales units, which could be conducted to attain no profit no loss. On the other hand, Morgan et al. (2015) mentioned that breakeven analysis loses its friction if the data used in the calculation is irrelevant. Figure 2: Depicting the break sales and units for the proposed business (Source: As created by the author) Moreover, with the help of figure 2, the overall diagrammatic view of the breakeven units and sales could be effectively analysed. In addition, the above diagrammatic view could help Fanny understand the concept of breakeven analysis and how it is essential for continues growth of the company. In addition, $18,892.31 is mainly depicted, as the overall breakeven sales, which could be conducted by Fanny in her new proposed business to attain no profit and no loss. Moreover, the overall break-even unit that needs to be maintained by Fanny in her new Choc-O-Lay branch is 157 units. Khurshid et al. (2014) cited that determination of number of units, which could help in maintaining continuity of the business mainly, allows the management to make adequate pricing strategy to increase its market share. Nevertheless, Nykamp et al. (2014) argued that continuation of no profit no loss strategy could eventually affect future growth of the company and might reduce its liquidity. Analysis of the Profit and Loss statement at the end of first year for the proposed business: Figure 3: Depicting the Profit and Loss statement for the proposed business (Source: As created by the author) With the help of figure 3, the overall profits and loss statement for the new proposed project could be effectively evaluated. Moreover, in the first year of the operation Fanny could eventually have a profit of around $25,434, which is effective for continues growth of the new Choc-O-Lay branch. Bartov and Mohanram (2014) mentioned that calculation of projected profits from a new venture mainly help companies to evaluate the overall return that could be generated from operations. On the contrary, Kim et al. (2013) stated that projected profits could lose its friction during an economic crisis, which in turn affects investment capital of the company. After effective analysis, the overall demand for the Choc-O-Lay products in USA could help Fanny achieve the targeted profits in first year. Furthermore, from figure 3, the rising material cost is also depicted, which is mainly hampering profits of the company. Fanny could effectively use social media marketing to promote Choc-O-Lay products in USA. Healy and Palepu (2012) stated that companies with the help of effective online marketing are able to promote their products and increase their capacity to reach potential customers. However, Oberholzer (2013) criticises that any changes in assumed demand could negatively affect the actual profits and hamper cash reserves of the new venture. Furthermore, Fanny could not take advantage of tax exemptions, as she will invest her own capital in the new Choc-O-Lay branch. Analysis of the Balance Sheet statement at the end of first year for the proposed business: Figure 4: Depicting the Balance Sheet statement for the proposed business (Source: As created by the author) Figure 4 mainly depicts the overall projected balance sheet for the new Choc-O-Lay branch that will be opened by Fanny in USA. In addition, after evaluating the balance sheet, overall asset and liability that could be accumulated within first year of operations can be effectively analysed. Moreover, the total owners contribution for the new Choc-O-Lay branch is around $180,982. This mainly depicts the limited amount of money, which will be invested by Fanny from her retirement fund. In this context, Hormann and Schabert (2015) mentioned that projected balance sheet mainly help investors to evaluate the total investment capital that will be required in the new venture. On the other hand, Velicogna and Wahr (2013) criticises that without adequate research, balance sheet valuation might lose its friction and negatively affect projected profitability of the company. In addition, figure 4 also helps in analysing the overall inventory, which could be maintained by Fanny during 1 year of the operations. Jimenez and Ongena (2012) suggested that with the help of inventory valuation, investors are able to determine the quick ratio, which is used in understanding financial stability of the company. Furthermore, with the help of inventory valuation, Fanny could get the overall minimum inventory balance that could be maintained during first year of operations. On the other hand, Del and Sims (2015) criticises that increased inventory investment could eventually block essential working capital and might reduce productivity of the company. Furthermore, Fanny could effectively invest in refrigerator, distribution rights, market research, and website designing to increase its overall assets. In addition, these investments could eventually help in maintaining the level of productivity that is required for the new Choc-O-Lay branch. Kim (2016) mentioned that adequate accumulation of assets mainly help new business to increase their productivity and profitability. However, Paci (2012) criticises that increased investment in assets could block essential working capital, which negatively affect productivity of the company. Moreover, the overall current liabilities for the projected balance sheet are employee salary and labour cost of packing, which is at $3400. In addition, the overall depiction of current liabilities mainly helps Fanny to evaluate the overall financial obligations that could be incurred from the new proposed business. Aysun and Hepp (2013) stated that evaluation of liabilities mainly help investors to analyse the financial strength of the company. On the contrary, Gambacorta et al. (2014) criticises that increased accumulation of liabilities mainly reduces current ratio of the company, which in turn might affect its ability to support their current financial obligations. However, total liability and total asset of the new proposed business is at $209,815. In addition, this overall valuation of the balance sheet could mainly help Fanny in determining the viability of the investment opportunity (Del and Sims 2015). Moreover, the balance sheet, and income statement evaluation, Fanny could determine the overall profits that could be generated from the new venture for the first fiscal year. Analysis of the Monthly and annual Cash Flow statement for the first year for the proposed business: With the help of figure 5, the overall monthly cash flow statement for the first year can be effectively analysed. Moreover, this cash flow statement could help Fanny understand the liquidity requirements of the new venture. Serban (2013) stated that cash flow evaluation mainly depicts the overall cash transaction that is conducted by the company for the current fiscal year. In addition, the cash flow statement mainly depicts loss in operating cash flow generated for first six months. However, after the initial first six months there is a gradual rise in operating cash flow, which might help in supporting the overall activities of the new venture. In addition, due to declined sales in the first six month the profits generated from sales were not adequate, which could negatively affect its cash availability. On the contrary, Khanji and Siam (2015) criticises that without adequate market research new venture could lose friction and hamper profitability of the company. Moreover, due the expenditure of $116,510 of initial investment during the first month could mainly reduce cash balance of the proposed business. In addition, the cash flow also depicts the overall expenses that will be conducted over the period of first fiscal year. Collins et al. (2014) mentioned that determination of adequate liquidity requirements in a new business mainly helps in reducing slack time. On the other hand, Miao et al. (2016) companies with the help of NPV valuation is able to determine the adequate investment opportunity, which might provide higher return from investment. In addition, figure 5 also depicts the annual cash flow statement, which could be helpful in analysing the overall expenditure, income, and profits generated in the current fiscal year. Moreover, highest expenditure is conducted on material cost, which is imported from UK. In addition, closing cash balance due to negative transaction declined until first six month but effectively increased for rest of the fiscal year. Total cash inflow for the first year stands at $-25,109.6, which is adequate for first year operations. Farshadfar and Monem (2013) argued that evaluation of total cash flow statement mainly help investors to analyse the transactions that is conducted by companies in the current fiscal year. Analysis of the Discounted Cash Flow statement for the proposed business: The discounted cash flow is based on the analysis of five years with the operating cash flow for the first financial year shows a negative balance of $25,110. However, in the subsequent year the operating cash flow represents the cash flow amount of $30,132. The amount of initial cash flow is subjected to rise at a rate of 20 per cent per annum. The discounted cash flow also shows that capital expenditure incurred for the first financial year stands $116,510. Free cash flow for the first financial year represents a negative value of $141,620. On the subsequent year, the free cash flow stands $30,132 and for the final year, the free cash flow stands $52,067 approximately. The analysis also gives rise that the average free cash flow growth rate is represents 45.33% annually. According to Larrabee and Voss (2012), the concept of discounted cash flow states that it is a methodology employed to assess the investment by taking into the considerations the anticipated rate of accumulated int erest. Figure 6: Depicting the Discounted Cash Flow statement for the proposed business (Source: As created by the author) Fanny current discounted cash flow shows the present discounted value of cash in a negative value of 150,813. It is to be noted that the discounted cash flow is forward looking method rather than depending on the historical view of cost. It is argued that a business may not yield the desired amount of profit however; it does not necessarily depend upon the historical cost data. On the other hand, Heinrichs et al. (2013) argued that the method of DCF is more inclined towards the fundamental expectations of the business, and does not includes the volatile external factors in the analysis. The benefit of using the DCF cash flow is that it enables the analysis of different components of business rather than evaluating each component separately. Evaluating the overall capital needed for the proposed business: Fenny received $475,000 after her retirement and the overall capital requirement for Choc-O-Lay will be $200,000 with the owners equity contribution of $180,982. The information derived from the forecasted balance sheet states that Fenny is looking forward to acquire inventory of worth $78327, which will be her initial amount of investment for the opening stock of raw materials. In addition, to this deposit derived from the industrial room stood $1260 with opening cash balance of $39,362. The total amount of current assets stands $118,949 for the first forecasted financial year. On the other hand, Fenny is also looking forward to acquire fixed assets in the form of Refrigerator with annual depreciation value of $1050 under the fixed straight-line method. The refrigerator will be depreciated at a span of five years with no residual value (Peirson et al. 2014). Fenny will also be acquiring the marketing and distribution rights of worth $100,000. It is to be noted that marketing and distribution rights will be be depreciated in the span of five years under fixed line method with $20,000 per year. The forecasted balance sheet shows that other fixed assets such market research, website designing will be amortized, and all the assets will have the span of five years (Larrabee and Voss 2012). The total amount of fixed assets will be $90,867 for the first financial year. The current liabilities consist of the outstanding expenses with the salary of employees and labor cost of packaging $2650 and $750 respectively. According to Fabozzi and Peterson (2013), it could be noted that investment made in inventories could essentially lead to lock up of initial amount of capital. In this context, Healy and Palepu (2012) further stated that until the expiry of lock in period, no inventory turnover is possible and this could possibly lead to absolute inventory or abnormal loss of inventories due to pilferage or lean sales. The analysis is based on the critical evaluation of owners equity contribution, which could have been slightly on the higher side as the total amount of equity after net tax deduction stands $206,415. Evaluating the Sensitivity analysis that could be used by Fanny for the proposed business: Sensitivity analysis can be defined as the study of determining the uncertainty regarding the output of the mathematical model or systems, which can be allocated to different source of uncertain inputs. The procedure of calculating the desired outcomes under the alternative assumptions is to determine the impact of a variable input under the sensitivity analysis for determining the useful for a range of purpose (DeFusco et al. 2015). The impacts of policies and programs adopted by Choc-O-Lay may turn out to be difficult to measure or predict and the values yielded from this impact is difficult to monetize. With the implementation of sensitivity analysis techniques Choc-O-Lay can examine the degree of uncertainty in the cost benefits analysis and shows the reasons behind inputs which effects the results derived from business. Figure 7: Depicting the sensitivity for breakeven analysis for the proposed business (Source: As created by the author) The break even for the first year is $120.00 sales per unit with variable cost of material $86.88 having a conversion rate of $1.12, packaging and shipping cost and credit card charges are of $2.00 and $1.20 respectively. Packaging and shipping cost is considered as variable due to the changing nature of production level. On the other hand, rent for industrial room and employees salary is considered as fixed cost having the worth of $420.00 and $2650.00 respectively (Lerner et al. 2012). At the operating level of 120.00 per unit, Choc-O-Lay will have to sale an approx of 1889 units to attain the level of break-even sales after incurring the contribution cost of $95,405. On the other hand, Choc-O-Lay if decides to sell $108 per unit annually, it will incur the cost of material of worth $86.88 with conversion rate of $1.12. On the implementation of discount, Choc-O-Lay will be able to sale 4834 units to achieve the breakeven point with contribution of $73.892. It is noted that Fenny would incur a cost of 100,000 to acquire the marketing rights. The rights acquired would have a life span of five years. However, it is to be noted that she has received a sum of $475,000 during the time of retirement and if Fanny decides to invest the amount directly received would not get the benefit of tax exemption and this would lead to lock in of capital as well. On the other hand, if Fanny decides to take loan and employ the same to acquire the rights she would get the benefit of tax exemptions, which will further enable her to earn interest by investing in fixed deposits schemes (Aysun and Hepp 2013). The interest gain on fixed deposit could range from 3 to 5 per cent on annual basis. The principle amount of investment in fixed deposit scheme includes $100,000 that will be invested to earn fixed interest of $20,000 on annual basis. The interest earned from the fixed deposit schemes would form a part of Fannys additional income. Conclusion and Recommendation: The study mainly helps in evaluating the new business opportunity that could be used by Fanny to increase its income after her retirement. In addition, the novice has effectively prepared projected income, cash flow and balance sheet statement, which could help Fanny in making adequate invest decisions. In addition, the study also helps in evaluating the breakeven sales and units, which could be used by fanny to determine the minimum amount of sales. Moreover, the evaluation of no profit no loss situation could effectively help Fanny to push the number of sales, which might have no negative impact on her investment. Furthermore, the study also provides discounted cash flow statement, which could be used by Fanny in determining the investment viability. In addition, with the help of sensitivity analysis, Fanny could be provided with different situation that might help in her investment decision. Moreover, the study mainly helps Fanny make adequate investment decision, which might in t urn provide adequate return for rest of her life. Recommendation 1: After the overall evaluation of all the projected financial statement, certain amendments could be conducted by Fanny to increase the overall profits from the new business. In addition, the main expenditure is conducted on the materials that will be imported from UK. Moreover, Fanny could purchase the machinery directly from Choc-O-Lay Company to decrease its overall purchases. In addition, this reduce imports could eventually help in decreasing the overall shipping and air freight charges, which in turn could help in improving profitability of the new business. Moreover, Fanny has around $475,000 as her capital, which might effectively help in purchasing the machinery for producing Choc-O-Lay products in US. This method could effectively help in reducing cost of production and improve profitability of the new Choc-O-Lay branch. In addition, the overall breakeven units and sales could also be reduced and helps the company attain more profits. The strategy could also help in determining a positive DCF, which could help in increasing authenticity of the overall proposed business. Recommendation 2: Fanny could demand more discounts on the overall Choc-O-Lay products that is been imported in US. This increased discount could help in reducing cost of material and might help in increasing profitability from the new venture. Furthermore, Fanny could also purchase materials on bulk to initiate more discounts from Choc-O-Lay Company. These increased discounts from purchase price could eventually help in improving profitability of the company, which in turn might have positive effect on cash flow, income, and balance sheet statement. Furthermore, the increased income could also help in obtaining a positive DCF, which might in turn increase viability of the project. Reference: Alhabeeb, M.J., 2012. Break Even Analysis.Mathematical Finance, pp.247-273. Aysun, U. and Hepp, R., 2013. Identifying the balance sheet and the lending channels of monetary transmission: A loan-level analysis.Journal of Banking Finance,37(8), pp.2812-2822. Bartov, E. and Mohanram, P.S., 2014. Does income statement placement matter to investors? The case of gains/losses from early debt extinguishment.The Accounting Review,89(6), pp.2021-2055. Brigham, E.F. and Ehrhardt, M.C., 2013.Financial management: Theory practice. Cengage Learning. Brigham, E.F. and Houston, J.F., 2012.Fundamentals of financial management. Cengage Learning. Call, A.C., Chen, S. and Tong, Y.H., 2013. Are analysts' cash flow forecasts nave extensions of their own earnings forecasts?.Contemporary Accounting Research,30(2), pp.438-465. Collins, D.W., Hribar, P. and Tian, X.S., 2014. Cash flow asymmetry: Causes and implications for conditional conservatism research.Journal of Accounting and Economics,58(2), pp.173-200. DeFusco, R.A., McLeavey, D.W., Pinto, J.E., Anson, M.J. and Runkle, D.E., 2015.Quantitative investment analysis. John Wiley Sons. Del Negro, M. and Sims, C.A., 2015. When does a central bank s balance sheet require fiscal support?.Journal of Monetary Economics,73, pp.1-19. Fabozzi, F.J. and Peterson, P.P., 2013.Analysis of Financial Statements. Wiley. Farshadfar, S. and Monem, R., 2013. Further evidence on the usefulness of direct method cash flow components for forecasting future cash flows.The international journal of accounting,48(1), pp.111-133. Gambacorta, L., Hofmann, B. and Peersman, G., 2014. The Effectiveness of Unconventional Monetary Policy at the Zero Lower Bound: A Cross Country Analysis.Journal of Money, Credit and Banking,46(4), pp.615-642. Healy, P.M. and Palepu, K.G., 2012.Business Analysis Valuation: Using Financial Statements. Cengage Learning. Heinrichs, N., Hess, D., Homburg, C., Lorenz, M. and Sievers, S., 2013. Extended dividend, cash flow, and residual income valuation models: accounting for deviations from ideal conditions.Contemporary Accounting Research,30(1), pp.42-79. Hrmann, M. and Schabert, A., 2015. A monetary analysis of balance sheet policies.The Economic Journal,125(589), pp.1888-1917. Hull, J.C., 2014.The evaluation of risk in business investment. Elsevier. Jimnez, G. and Ongena, S., 2012. Credit supply and monetary policy: Identifying the bank balance-sheet channel with loan applications.The American Economic Review,102(5), pp.2301-2326. Kaplan, R.S. and Atkinson, A.A., 2015.Advanced management accounting. PHI Learning. Khanji, I.M. and Siam, A.Z., 2015. The Effect of Cash Flow on Share Price of the Jordanian Commercial Banks Listed in Amman Stock Exchange.International Journal of Economics and Finance,7(5), p.109. Khurshid, R., Tabish, S.A., Hakim, A., Khan, A. and Singh, Y., 2014. Break-even analysis of MRI facility at a large tertiary care teaching hospital of North India.IJMAHS,2, pp.220-222. Kim, S., Kraft, P. and Ryan, S.G., 2013. Financial statement comparability and credit risk.Review of Accounting Studies,18(3), pp.783-823. Kim, Y.J., 2016. Foreign currency exposure and balance sheet effects: A firm-level analysis for Korea.Emerging Markets Review,26, pp.64-79. Larrabee, D.T. and Voss, J.A., 2012.Valuation techniques: Discounted cash flow, earnings quality, measures of value added, and real options. John Wiley Sons. Lerner, J., Hardymon, F. and Leamon, A., 2012. Venture capital Private equity: A casebook. Miao, B., Teoh, S.H. and Zhu, Z., 2016. Limited attention, statement of cash flow disclosure, and the valuation of accruals.Review of Accounting Studies,21(2), pp.473-515. Morgan, R.O., Bass, D.M., Judge, K.S., Liu, C.F., Wilson, N., Snow, A.L., Pirraglia, P., Garcia-Maldonado, M., Raia, P., Fouladi, N.N. and Kunik, M.E., 2015. A break-even analysis for dementia care collaboration: Partners in Dementia Care.Journal of general internal medicine,30(6), pp.804-809. Mousavi, S.M., Hajipour, V., Niaki, S.T.A. and Alikar, N., 2013. Optimizing multi-item multi-period inventory control system with discounted cash flow and inflation: two calibrated meta-heuristic algorithms.Applied Mathematical Modelling,37(4), pp.2241-2256. Nykamp, S., Bakker, V., Molderink, A., Hurink, J.L. and Smit, G.J., 2014. Break even analysis for the storage of PV in power distribution grids.International Journal of Energy Research,38(9), pp.1112-1128. Oberholzer, M., 2013. A Non-Parametric Comparison Among Firms' Income Statement-Based And Balance Sheet-Based Performance.The International Business Economics Research Journal (Online),12(11), p.1467. Oikonomou, I., Brooks, C. and Pavelin, S., 2012. The impact of corporate social performance on financial risk and utility: A longitudinal analysis.Financial Management,41(2), pp.483-515. Paci, E., 2012. Summary of the evidence of breast cancer service screening outcomes in Europe and first estimate of the benefit and harm balance sheet.Journal of medical screening,19(1), pp.5-13. Peirson, G., Brown, R., Easton, S. and Howard, P., 2014.Business finance. McGraw-Hill Education Australia. Serban, A.A.M., 2013. The Financiar and Functional Balance Sheet-Instruments of the Financial Position Analysis.International Journal of Academic Research in Economics and Management Sciences,2(1), p.176. Titman, S., Keown, A.J. and Martin, J.D., 2015.Financial management: Principles and applications. Pearson. Velicogna, I. and Wahr, J., 2013. Time variable gravity observations of ice sheet mass balance: Precision and limitations of the GRACE satellite data.Geophysical Research Letters,40(12), pp.3055-3063.