1 ) What is the impact of the 12 , 1993 deliveries of standard lenses to Bausch and Lomb 93 financial claims? Is the influence significant?
The impact was: -
i)Increased revenue by $22M
ii)Reduced products on hand by 1 . 8 million pair. Based upon the COGS of 45%, this could indicate a reduction in inventory of close to $10M. iii)There is very very little increase in SG& A because not much was spend with regards to sales effort. iv)AR increased significantly with some in the promissory remarks are payable in 06 1994 (6 months after sale) v)Probably increase marketing, promotional and expenses related to discounts in the subsequent 12 months due to " Premier VisionвЂќ plan.
This kind of impact is definitely significant.
From the assertions, B& M reported a 13% YoY increase in sales revenue. Nevertheless , exhibit 6 showed that there was a decline in market with regard to conventional improved lenses, but an embrace both designed replacement and disposal lens. B& D does not generate either of people products, the reports mentioned a healthy expansion in revenue. This enhance was largely due to sales revenue known from the 93 large quantity shipment towards the distributors, copying inventories by B& M to various vendors and named revenues to B& M. This strategy not only increased the revenue to get the year drastically but as well reduced the extra inventory held by B& L, and increased their particular AR considerably, thus portraying a positive view on the "balance sheet".
installment payments on your Does the fresh distribution and sales approach make sense via an detailed standpoint? Why or perhaps you should?
The main advantages of the new syndication and sales strategy are as follows: -Marketing resources would be immediately freed up to concentrate on the disposable market -B& L ought to hold significantly less inventory intended for the conventional lens -Possibly reduced distribution price due to transport consolidation. B& L only have to ship to distributor storage place instead of last customer location. Since distributor orders may be combined and shipped in...