I am looking to the answer for the Charles Plant Accounting case analysis. I've attached a photo of the problem...
medCharles Plant billion the MacLeish Nurseries wholesales non-seasonal plants. Sales for the previous three quarters ending September 31, 2004, were poor because of the cold spring and summer. The plants could be sold at two times cost to other wholesalers, but the company had 3.5 million plants that it could not sell in the following quarter. Also, the firm's banker is asking for its loan to be paid down to below $500,000 and the manager, Kathleen Biro, is worried about whether she will receive her new share options, which will be released if revenue meets or exceeds this year's budget of $18 million. For some time the company's owners have been considering selling the business; they are now very interested in improving profits in order to enhance the sales price. Below is the 2004 financial statement for MacLeish for the first three quarters ($000s). Q3 Sales revenue Q1vid inamao Q2 a $2,000 $4,000 $5,000 anions Expenses HomA duo? ,sizA ni anoisia 19woq noialvin manoo conO . blind of ansoy ows zolai'monare Towog lasigns A .noizivid Cost of goods soldvil anonsago adr or twoq to Forq as bonoqan grind coo doulou 500 pini "blog" 1000 1,250 Fixed salaries anissabong a foe and justnogarisen 800 800 800 andi mogiel Variable salaries 0 sai of nofervid maniqolave 300 mol anois 600 ghoo 'norman 750 Rent 200 200 ni norisle General sgial yinoom gnigolovsb nand and nodaivic vioments ne of ghiwo visial awon schmid 300 qolsys(I Advertising d norivib at 500 500 anissaco Isthemnorivis a 400 end gas 800 1,000 Total expenses 2,500 in ano 3,900 4,600 Profit le'nomind yd bojourmanoo enobare -500 100 400 bas nois bas ,a)Units sold (000) animals grillsa yd sunover asys 1,000 d .noialvib . .for 2 2,000 2,500 enougha Bank loan adding of asluz staroqzoo vd borinpor ai .a 1,50070 azz 1,400 1,000 012 15 Sales in the fourth quarter are normally equal to sales in the third quarter, and all indications are that this will be the case for this year as well. anon The company has noticed that its results depend heavily on two factors: advertising and price. Over time, it has noticed that any change in advertising from seasonal levels results in a 2.5-to-1 change in sales. In other words, a $1 change in advertising results. in a $2.50 change in sales from otherwise normal seasonal levels. In terms of pricing, a moo 5815 2 percent decrease in the retail price of plants results in a 4 percent increase in sales Volume. Similarly, a 2 percent increase in the price results in a 4 percent decrease in quitnuo. sales volume. 12q .A .boiraq may-08 s lavo .ohq bamboozib vilniusre. zounovor out Its ads to ou aquoszib acht bobroast noizivil; ads .esluz Write a report recommending a course of action for MacLeish Nurseries. ad NEL soda batrisontoo ad bluoda ad esuezi vas ylunablebabivory notesmotal ads atoganam. 'noirvib slows to sonormotran