Question
Accept or deny SNC is considering an opportunity to add Atlantic Wellness, a large, successful health food chain as a new corporate customer for its
Accept or deny
SNC is considering an opportunity to add Atlantic Wellness, a large, successful health food chain as a new corporate customer for its herbal nutraceutical product line. Taking on this customer would immediately increase SNC's sales by $4 million per year (a one-time increase of 40%) and EBIT by $260,000. The profit margins and net working capital terms would remain the same as for SNC's existing business.
| 2013 | 2014 | 2015 | Post 2015 | |
|---|---|---|---|---|
| Incremental Summary Income Statement ($ in thousands) | ||||
| Sales | $4,000 | $4,000 | $4,000 | $4,000 |
| Cost of Sales | $3,740 | $3,740 | $3,740 | $3,740 |
| EBIT | $260 | $260 | $260 | $260 |
| Incremental Balance Sheet ($ in thousands) | ||||
| Accounts Receivable | $1,205 | $1,205 | $1,205 | $1,205 |
| Inventories | $922 | $922 | $922 | $922 |
| Accounts Payable | $420 | $420 | $420 | $420 |
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M Glichkeiten Und Grenzen Der F Rderung Verantwortlichen Handelns Von Wirtschaftspr Fern In Moralisch Relevanten Situationen Eine Theoretische Und And Accounting Studies
Authors: Catharina Schmiele
2012 Edition
383493335X, 978-3834933355
