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on Whale, the new CEO of your company, has shown unwavering dedication from the start. His close relationship with the shareholders, who are also his

on Whale, the new CEO of your company, has shown unwavering dedication from the start. His close relationship with the shareholders, who are also his friends, is a testament to his commitment. Jon's vision is to significantly increase the company's net worth through aggressive strategic growth and wealth maximization.
Jon is meticulous in his financial planning. Using the data from the 2023 annual report, he aims to forecast sales and operating costs for the next two years based on the trend. He aims to ensure the company maintains at least a 20% net margin, is it achievable? He is also keen on understanding the company's value (Net worth) trajectory over the past two to three years and how future operations will impact this value.While discussing competitors' financials, Jon needed clarification on the profitability and efficiency ratios interpretation. He is particularly interested in understanding how these ratios can be used to assess the financial health and performance of the company.
Jon had a meeting with its production manager to discuss potential cost-saving opportunities, further to which the production manager suggested that the company should hire part-time labourers on cash, especially targeting international students, so that they can be paid below the minimum wage (since it is cash, and we have a considerable supply) and can save few thousand of dollars. Jon is not entirely convinced and seeks the ethical implications of such practice.
The production manager also highlighted that 30% of the total cost (as reported in the financial statement) consists of variable costs, and the remaining 70% is total fixed costs. Jon is still determining if this can help him forecast (the next two years) any significant information. He also needs to be aware of what is fixed and variable costs.
Jon desires to distribute 40% of the profit for the current year amongst the shareholders.
As an MBA student, Jon seeks your advice on the above-discussed issues. the company is aritzia

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