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University of d

Faculty of Management
Business Management 3rd year

Strategic Management Accou


Ewelina Zarzycka, Ph.D.

Authors:
Piotr Bartenbach
Bartomiej Staszczyk
Dominik Wolski

Pace Company - Case Study

Sales
Gross profit
Net profit
Net assets at start of year
Gross profit margin
Net profit margin
ROI

2005
200
80
13
100
40%
6.5%
13.0%

Store
2006
200
70
14
80
35%
7.0%
17.5%

W
2007
180
63
10
60
35%
5.6%
16.7%

2008
170
51
8
40
30%
4.7%
20.0%

The manager should reallocate profits from year 2006 to year 2005 in order to
achieve satisfactory return. In order to do so, he would need to create an
invoice for future goods sales by the end of the 2005 and deliver them at the
time set in a contract (2006). Other option would be to transfer cost into next
period record invoices from supplier not at the time of receiving (2005) but
at the beginning of year 2006.

Sales volume
Sales price
Revenue
Variable costs
Variable cost per unit
Gross profit
Net profit
Overheads (incl. depreciation)
Investment
ROI

Year 1
18000
12
216000
129600
7.2
86400
16400
70000
100000
16.4%

Store S
Year 2
Year 3
Year 4
19800
21780
21780
12
11.4
10.83
237600 248292.0 235877.4
142560 156816.0 156816.0
7.2
7.2
7.2
95040
91476.0 79061.4
25040
11476.0
-938.6
70000
80000
80000
75000
50000
25000
33.4%
23.0%
-3.8%

c Management Accounting
welina Zarzycka, Ph.D.

dy

Answer
Year 4 with 15% ROI
23072
10.83
249869.8
166118.4
7.2
83751.4
3751.4
80000
25000
15.01%

University of d Strategic Management Accounting


Faculty of Management
Jan Michalak, Ph.D.
rd
Business Management 3 year
Authors:
Piotr Bartenbach
Bartomiej Staszczyk
Dominik Wolski

Finnegan's Gardens - Case Study