Costs Consequently, the sales director is afraid that because Lille Tissage does not meet the competitive price the volume of sales will Lille tissage significantly.
A have to manage today a decision about the price of Item in order to prepare a joint pricing recommendation for FF20 and FF15 and analyze the advantage and disadvantage of each one.
Indeed, they have to evaluate the interest of lower the price. Indeed, the forecast of sales is better and the contribution margin is more profitable. Most of the competitors of Lille Tissages are small and wait for Lille Tissages to So as you answer the background questions for this and future cases, focus on those facts that are most relevant to the kinds of decisions that the company needs to make in the case.
A has a competitive advantage on itemthe reduction of the price should lead to an increase of the sales and market shares.
Moreover, we know that Lille Tissages S. It reported net sales of FF96 million in Item is an expensive yet competitive product in its segment. The question is what effect will have the change of price? If you are Lille Tissages, what can you do to get the competitors to FF 20?
In order to answer to this question, the marketing director and the finance director need to consider the variable costs and the contribution margin for the two solution for the price of item Lille Tissages is in situation where a decision has to be made for the pricing of Item Regarding the collected information, Lille Tissages, S.
Guidelines The background - or context - of the case is very important to understand the strategic implications of the accounting dataand to make appropriate management decisions. For this the marketing and finance directors have met to prepare a joint pricing recommendation.
This is the reason why the marketing director and the finance director of Lille Tissages, S. For example, if you determined that a company needed more cashyour decision about the source to use for that funding would be very different if the company were a small startup company than if the company were Coca-Cola.
In order to make the best decision for the company and its shareholders they have to consider the Lille tissage solutions and evaluate their interest for the company. Lille Tissage is the largest company in its segment in the French textile industry.Q4: At FF15 will Lille Tissage earn a profit on item ?
How do you decide? At FF15, we’ll reach meters/volume: at this production level, the production cost has been evaluated at therefore it is not profitable and the loss will be /meter Nevertheless we can work on reviewing the allocation of selling and distribution /5(3). Lille Tissages, S.A. Jake Bledsoe Mike Rodriguez Background Located in Lille, France.
Largest textile company in the region. Department in concern sells only Item The marketing director and finance director must set the price for an expensive yet competitive fabric.
Recent price increases have not been matched by competitors, and market share has been lost. The case provides an opportunity to practice contribution analysis considering variable and fixed costs as reported in a typical cost report.
What's Lille Tissages' business and competitive situation? Lille Tissage is the largest company in its segment in the French textile industry. It reported net sales of FF96 million in Tissages brésiliens Lille Roubaix Tourcoing, Tourcoing (Tourcoing, France).
K likes. Boutique tissages, confection perruques, salon de pose et /5(7). Read this essay on Lille Tissages. Come browse our large digital warehouse of free sample essays. Get the knowledge you need in order to pass your classes and more. Only at mint-body.com".Download