Le hace camers must come in Doctus lyties shoes is owned by for pointments to have to walk aralyzed and their precise toot measurements taken as well as to discuss other customized features For advertising McQuiggan Ramblers relies Targoly on customers eagerly spreading the word about the shoes Liam employs a small staff of 6 people, which keeps his costs low but means that he seldom has time for holidays and sometimes has difficulty keeping up with demand. He is considering expanding production by hiring more highly skilled staff to take some of the design burden off of himself and free up time for further production. This would also require him to rent a larger production facility for the shoes, though his storefront could remain the same. He estimates that the new facility's rent would add another $800 per month and an initial $15.000 for the equipment and renovations he'd need, but he also believes that he could double his production His concerns are that hiring more staff may impact his image as a customer-focused retailer with, as he says, "impeccable quality at a ludicrously reasonable price. After a favorable article in an outdoors magazine, word of his business has spread much further beyond his city. Liam has a good relationship with his suppliers, who are typically willing to extend him trade credit up to 90 days to fund his production costs as necessary On average, the business can produce 100 pairs of shoes per month, but it can sometimes take up to 2 months between when the customer places their order and when the shoe is finished and the purchase is completed. Though some customers pay in full at the time of order, most pay 25% of the purchase price up front, with the remainder paid when the shoe is completed For the last five years, Liam has been able to fund his business through retained profit, and he would like to expand without relying on external finance Cost and revenue data for the business is shown below: Average Monthly Output 125 pairs of shoes Average unit price $300 Average materials cost per pair of shoes $55 Direct labor costs per pair of shoes $60 Administrative costs $3800 per month Rent $1300 per month Utility bills $140 per month 1) Discuss tum's desire to fend that expansion through retained front versus relying on oxtomatince. (10 marks) Le hace camers must come in Doctus lyties shoes is owned by for pointments to have to walk aralyzed and their precise toot measurements taken as well as to discuss other customized features For advertising McQuiggan Ramblers relies Targoly on customers eagerly spreading the word about the shoes Liam employs a small staff of 6 people, which keeps his costs low but means that he seldom has time for holidays and sometimes has difficulty keeping up with demand. He is considering expanding production by hiring more highly skilled staff to take some of the design burden off of himself and free up time for further production. This would also require him to rent a larger production facility for the shoes, though his storefront could remain the same. He estimates that the new facility's rent would add another $800 per month and an initial $15.000 for the equipment and renovations he'd need, but he also believes that he could double his production His concerns are that hiring more staff may impact his image as a customer-focused retailer with, as he says, "impeccable quality at a ludicrously reasonable price. After a favorable article in an outdoors magazine, word of his business has spread much further beyond his city. Liam has a good relationship with his suppliers, who are typically willing to extend him trade credit up to 90 days to fund his production costs as necessary On average, the business can produce 100 pairs of shoes per month, but it can sometimes take up to 2 months between when the customer places their order and when the shoe is finished and the purchase is completed. Though some customers pay in full at the time of order, most pay 25% of the purchase price up front, with the remainder paid when the shoe is completed For the last five years, Liam has been able to fund his business through retained profit, and he would like to expand without relying on external finance Cost and revenue data for the business is shown below: Average Monthly Output 125 pairs of shoes Average unit price $300 Average materials cost per pair of shoes $55 Direct labor costs per pair of shoes $60 Administrative costs $3800 per month Rent $1300 per month Utility bills $140 per month 1) Discuss tum's desire to fend that expansion through retained front versus relying on oxtomatince. (10 marks)