ipl-logo

Modernjet Case Study

1755 Words8 Pages

Distribution Costs Distribution costs are costs that a business has in order to get their product or service into the hands of their intended customers. ModernJET holds a simple distribution cost of only requiring gas to get to our customers. We will be open a total of 63 hours a week, with travel time taken into overnight account. Each of our three locations: Miami, Tampa, and Cape Coral; equates to a total of 563.6 miles round trip. The F650 truck that we plan to use, has a 30 gallon tank with 12 miles per gallon. This totals to us needing to fill up our truck with gas about two times in full. Tampa has an average gas price of $2.40 and Miami has an average gas price of $2.36. We will also need to fill up the gas tank in Cape Coral which …show more content…

By September, ModernJET expects to hit 100% washing capacity which will bring us in at a projected by year end. Since ModernJET does not have any cost of goods, we will be putting that profit back into the business by building a second machine to help grow our business, which drops profit down to $487,205.56. This will affect how our sales do in year three. We project to see the same patterns as in our first year, with a slow increase as we introduce our second machine, and possible more locations. By year end, we project net income is …show more content…

Repayment plans As a new business, it is safe to assume that ModernJET will be given the $81,623.53 loan at an interest rate of 7.25%. With this rate, we will be able and willing to pay a monthly payment of $745.11. Over a 15 year period, the company will pay total interest of $52,496.43. Therefore, the total amount of payments will equal $134,119.96. 4. Plan to repay borrowed funds or provide return on investment equity funds. With the profit ModernJET is expected to make, the two investors who invested in the startup will be paid on a monthly basis. This allows the company to repay the investors while still making a profit. X. Key Metrics Maintaining an organized system for tracking key metrics is imperative for any successful business. ModernJET will measure essential components to the business such as Customer Acquisition Costs, Lifetime Values, and Viral Coefficient. ModernJET’s Customer Acquisition Costs must continue to be a low cost when observed. With the delegated customer segment, anything more than what’s currently decided would be deemed as unreasonable. In the case of our company, bigger risk will not always mean bigger

Show More
Related
393 Words | 2 Pages

Present value ($156,000) x Interest (4% / 12) or .33% or .0033. All divided by 1 – 1 divided by (1+.0033)^300 = $823.43 The monthly payments as it relates to principal and interst is

Read More
101 Words | 1 Pages

WestJet have done good in 2012 compared to 2011. In 2012 WestJet’s Operating Income on Sales was 10.96 % whereas in 2011 it was 8.35% that means WestJet have earned more per dollar of sales in 2012 before tax and interest. Return on Sales measures how well a company manages its expenses relative to its net sales. WestJet performed better in 2012 compared to 2011 in terms of return on sales.

Read More
454 Words | 2 Pages

Did you know Trudeau Liberal Government is loaning investing $372.5 million to Bombardier Airlines? Bombardier is a multinational aerospace and transportation company based in Montreal, Quebec, Canada. The issue that the cartoonist is trying to convey to his audience is that the Canadian aerospace company, Bombardier, is receiving significant assistance from the Canadian government with taxpayer dollars. We can see this illustrated in the above cartoon with the caricature of Justin Trudeau holding a briefcase full of dollars. The money is going through the jet turbine which ends with all that money being shredded or wasted.

Read More
905 Words | 4 Pages

The weather over the route was reported as excellent, a typical sunny Florida day. At about 3:30 p.m., Taylor sent a message to the control tower that his compass was malfunctioning and he thought he was somewhere around the Florida Keys, which is a chain of islands south of Florida (i.e. further south of the location where they took off). So instead of heading towards East, he thought that they actually flew southwards due to compass problems. Immediately an instruction was given from the tower to turn north and fly towards Miami, only if he was sure that they were at the Florida keys. However, Taylor 's idea of being close to the Keys was wrong.

Read More
214 Words | 1 Pages

This growth in sales and distribution costs was mainly caused by the increase of operating cost. Also, an unfavourable currency impact was another factor to the increase in sales and distribution coasts. In addition, Air Canada’s loyal customer plan, Aeroplan, caused dislike. Canadians are among the

Read More
2186 Words | 9 Pages

The inauguration of Virgin Australia Airlines, by Sir Richard Branson, as a domestic carrier in 2000 basically aimed at the convenience of the budget travelers. The Airlines was inaugurated as relaxed informal airline. Sir Richard was open-minded, amiable, and generous with his management team, imaginative, audacious and exclusive in his thoughtfulness. Initially started as a low-cost carrier, the company improved its services to turn itself into a “new-world carrier” as described by themselves (Virgin Blue media release, 2011, para. 2).However all these faltered when Qantas’ past marketing manager took over during 2011.

Read More
227 Words | 1 Pages

In 2014, Delta’s passenger revenue increased by $ 2.0 billion (6%) compared to the previous year as a result of a 2% increase in passenger mile yield and 4% increase in traffic. Passenger revenue per available seat mile (PRASM) also increased by 3% mainly from stronger domestic demand. Total operating expense increased $3.8 billion as compared to 2013 with consolidated operating cost per available seat mile (CASM) for 2014 increasing by 8% to 15.92 cents from 14.77 cents in 2013. Part of the reason for this increase was due to $2.3 billion related to unfavorable adjustments on fuel hedges and $716 million of fleet restructuring initiatives (early retirement of B-747-400 aircraft and the restructuring of the domestic fleet). The losses from

Read More
873 Words | 4 Pages

Method and Approach How can NTT Management Consultant identify the problem? The rational reason for hiring NTT Management Consultant (Appendix 5) is to assist in all stages of Bombardier life cycles. Figure 8 demonstrates an overview of problem solving. First of all, our team will work on problem diagnosis to evaluate current situations.

Read More
1996 Words | 8 Pages

Being United Kingdom’s leader in airline operations, British airways have faced an increase in competition over the last 10 years. Thus they have to contend with an increasing amount of the market share. TASK 1 1.1 Identify the purpose

Read More
715 Words | 3 Pages

This is another area that airline companies focus on as ticket sales are directly related to their operating income and affect customer satisfaction. Delta Airlines is proving to show that they have incorporated these areas and that is why in most recent years have seen record operating

Read More
759 Words | 4 Pages

The goodwill impairment can be identified if the recoverable amount of the goodwill is greater than the carrying value of the goodwill then there is no any impairment in the goodwill so there is no requirement for the test of the impairment. In this question, we have to make a comparison of the carrying value of the goodwill and the recoverable amount. Recoverable amount is greater than the fair value less cost to sell or value in use. Carrying Value of the Goodwill = $250,000

Read More
1984 Words | 8 Pages

Threat of New Entrants. In the airline industry, the arrival of a new airline can be disruptive, particularly since new carriers tend to focus on high-value route corridors and bill themselves as bargain carriers. On the other hand, the cost of entry into the market is fairly high, and that fact together with the industry’s reputation for lim-ited profitability makes such disruptions rather rare.

Read More
917 Words | 4 Pages

(c) When it came to the execution of Jet Blue’s “One Thing That’s Green’ public relations campaign, they approached it in a multi-faceted manner by selecting a number of communication tactics that they believe were best suited to implement the strategy. First it could be said that they centred their communication around a special event. In addition to this event they also executed many other communication and media tactics in an effort to achieve their goals. These included and would be discussed in turn – Building partnerships with the press, amplifying their digital platforms, promoting their initiative through brand storytelling, sparking dialogue and building a solid social media campaign.

Read More
1071 Words | 5 Pages

Cost volume profit analysis simplifies the calculation of breakeven in break-even analysis, and more generally provide simple computation of target income sales. It simplifies analysis of short run trade-offs in operational decisions. Cost volume profit analysis enables managers to be capable of answering specific realistic questions needed in business analysis. Questions such as what the company's breakeven point is support manager’s project with spending forecasts and how production will contribute to the success or failure of the

Read More
1145 Words | 5 Pages

What insight is provided by the new profitability analysis? What should Alice, Inc. do to enhance its profitability? In order to increase profitability we would advise Alice, Inc. to focus more on production and realization of Regular model faucets, i.e. spend more direct and indirect expenses on Regular model.

Read More

More about Modernjet Case Study

Open Document