We can work on Informal memo and excel sheet

Scenario: Mary Willis is the advertising manager for Bargain Shoe Store. She is currently working on a

major promotional campaign. Her ideas include the installation of a new lighting system and increased

display space that will add $24,000 in fixed costs to the $270,000 in fixed costs currently spent. In

addition, Mary is proposing a 5% price decrease ($40 to $38) will produce a 20% increase in sales volume

(20,000 to 24,000). Variable costs will remain at $24 per pair of shoes. Management is impressed with

Mary’s ideas but concerned about the effects these changes will have on the break-even point and the

margin of safety.

Assignment Steps
Complete the following:

Compute the current break-even point in units, and compare it to the break-even point in units if Mary’s

ideas are used.
Compute the margin of safety ratio for current operations and after Mary’s changes are introduced

(Round to nearest full percent).
Prepare a CVP (Cost-Volume-Profit) income statement for current operations and after Mary’s changes

are introduced.
Prepare a maximum 700-word informal memo to management addressing Mary’s suggested changes.

Explain whether Mary’s changes should be adopted. Why or why not? Analyze the above information

(three bullet points above) and use this information to support your suggestion.
Show your work in Excel.

Complete calculations/computations using Excel.

Sample Solution

Have the option to actualize wellbeing, security and security rehearses in the salon 1. What is a hazard evaluation? A hazard evaluation is the procedure whereby the business distinguishes dangers in the work environment and examinations their potential hazard with an end goal to decide or control the risk. The business must examine the format of the salon and the work exercises embraced by the staff so as to assess the potential danger of damage, mishaps, or sickness. Hazard evaluations in the work environment are administered principally by a tripartite of laws. They are: The Health and Safety at Work Act 1974 The Workplace (Health Safety and Welfare Regulations) 1992 The Management of Health and Safety at Work Regulations 1999 Given these laws, bosses are in charge of the assurance and defend the welfare of the staff working at the salon and individuals from the open that visit the salon. It is additionally the business’ duty to tell the staff and visiting open of potential wellbeing and dangers. A hazard appraisal recognizes a potential danger, distinguishes who may be hurt and how, decides the security set up, assesses the probability and seriousness of its result (ordinarily on a size of 1-5), and stipulates the hazard rating (regularly on a size of 1-25). In the salon, for instance, one potential hazard is the harm and mischief that could emerge to both the customers and individuals from staff while working Laser and IPL Equipment. By directing a hazard evaluation before anybody works the gear, the hazard can be diminished, regardless of whether it can’t be totally disposed of. Regularly the proprietor or an individual from the executives, or even an outside organization, would do a series of the premises and lead the hazard appraisal before any staff or customers are permitted to draw in with the work environment. A hazard evaluation, basically, is a lot of preemptive and determined measures with the objective or diminishing or elimating dangers and perils in the work environment. One may decide if a danger represents a genuine hazard by taking a gander at past involvement with the risk, business codes of best practice, data from regarded associations, testing results, data about items included, and enacted necessities. The dangers are appraised in the wake of considering in the measure of staff and customers presented to the hazard, the seriousness of the hazard, recurrence of introduction to the hazard, and the likelihood of the hazard. Strategies for peril control incorporate end, substitution, defensive gear, and forced controls. All risks in the working environment ought to be reliably checked and looked into and controls ought to be actualized dependent on the discoveries. 2. What are the purposes behind a hazard evaluation? The essential purpose behind a hazard evaluation is to evacuate dangers, or diminish their hazard, from the working environment by adding safeguards so as to make a more beneficial and more secure condition for staff, clients, and guests. Hazard evaluations are a basic aspect of a decent wellbeing and security the board plan in the work environment. Hazard appraisals help in the accompanying regions: Make peril and hazard mindfulness Recognize people in danger (staff, customers, open, and so on.) Make needs for controlling perils Avert damage or disease In a legitimate sense, the hazard appraisal is significant in light of the fact that mishaps at work can be viewed as criminal carelessness with respect to the business as of the Health and Safety at Work Act 1974. Criminal procedures can be brought against the business in the event that somebody is harmed in their working environment. Further to this, the onus of confirmation is on the business if a mishap is to happen on their premises. A mishap all by itself will be viewed as verification of carelessness in court and it is dependent upon the business to give discrediting proof. Given these lawful contemplations, the business must draw up a hazard appraisal and make workers mindful of it. The hazard appraisal is significant in light of the fact that it can expel perils and dangers before they influence somebody, bringing about protracted lawful procedures for the business. It will help the salon chief to take a gander at existing practices embraced and to recognize shortages and present potential perils. In connection to IPL and Laser Class 4 and Class 3b, lasers can cause harm, maybe even changeless harm, to the eyes of both the customer and individual from staff. This harm can be brought about by taking a gander at the pillar or the impression of the shaft through ricochet back. Laser pillars can cause any of the harm recorded beneath: Consume the skin Touch off combustible materials Warmth up textures and material that can discharge gases, flotsam and jetsam, or unsafe exhaust. Aberrant risks could incorporate types of radiation, gas spillage, and electric stun. There are numerous other related perils of the laser (counting smoke/vapor, compound, mechanical, and electrical), which would require a hazard appraisal. Via completing a hazard appraisal, and assessing the potential dangers appended to this sort of hardware, it will support the proprietor or chief to put wellbeing measures and controls into the salon work environment. 3/How compelling is a hazard appraisal So as to dissect how compelling a hazard evaluation has been you would need to quantify the results. The hazard evaluation, in principle, should be incorporated for it to be compelling. Staff must know about any progressions right away. When the hazard appraisal has been actualized, the new practices require estimating so as to be overseen and the adequacy to be watched. The hazard evaluation can fill in as a lot of objectives and practices to set up. When they are set up, the business should plot a lot of Key Performance Indicators, which will educate one regarding whether the measures and controls set up have been met. A straightforward strategy for estimation would be that the quantity of occurrences recorded in the mishap record book decreases. The hazard appraisal is best when each individual associated with the working environment is made mindful of the perils, dangers, and hazard evaluation. Bosses, representatives, and customers should all know about their jobs in securing their own and other’s wellbeing and security. A viable hazard evaluation imparts the necessities expected of every person in an unmistakable and straightforward way. The adequacy of the hazard evaluation can be improved with expanded responsibility from all individuals in the workforce, especially those in senior administration. Bosses ought to have great social and relational abilities and encourage a feeling of cooperation in the working environment. Coming up next are a few inquiries that could emerge from an all around idea out arrangement: Are there any dangers that have not yet been perceived in the work environment? Is it conceivable to dispose of perils absolutely from the work place? Can the harm be decreased having distinguished the perils? So as to secure the staff are the current wellbeing and security safety measures satisfactory? Without expanding expenses can the standard of insurance required be accomplished? Have elective practical methods for accomplishing a similar standard of security been depleted? Have singular individuals from staff been drawn nearer in regard of their contemplations on the hazard they face and do they comprehend why the preventive measures have been set up? Is the hazard appraisal procedure being followed in the salon and are the obligations of staff to report these? 4. For what reason is it essential to have wellbeing, security and security rehearses set up? It is critical to have these practices set up on the grounds that the law requires the salon to be a sheltered domain for staff, customers, and guests. On the off chance that one neglects to go along, one could confront indictment by an individual or organization. It is essential to have wellbeing and wellbeing and security so as to ensure the physical, mental, and social prosperity of all concerned. To put it plainly, no laborers ought to need to work in a situation where their wellbeing, security, or welfare is in danger. A salon that has these practices set up will be progressively impervious to antagonistic lawful activity and will be seen positively by the general population. On the off chance that the salon takes care of its representatives, they are bound to care for the salon consequently. Managers who feel esteemed and thought about will profit their organization in the accompanying ways: Staff assurance is great; laborers are roused Proficiency is more noteworthy; inspiration prompts profitability Creation increments Staff turnover is less (maintenance is improved) Protection premiums are lower The business is consistent with the law Decrease in number of unlucky deficiencies because of disease or damage The organization’s notoriety is ensured Coming up next are the detriments for not having Health and Safety and security rehearses set up: Mishaps, in connection to IPL/Laser this could mean consumes or eye harm Lost wages Therapeutic treatment Harm to gear and stock Lawful punishments Loss of notoriety Trouble selecting staff Loss of staff Loss of benefits In summation, it bodes well to take care of the wellbeing and security and security techniques in the salon. 5. What sorts of wellbeing and security and security practices would be utilized in a salon? There are numerous laws that oversee the various kinds of wellbeing and wellbeing and security practices utilized in a salon and the beneath rundown could fall under any of them: Satisfactory can offices and rest room offices in the salon Sheltered and solid hardware that have been tried and properly marked Fire entryways obviously checked and staff being made mindful of flame guidelines and departure methods of the salon (yearly hazard appraisal to be completed by representatives); fire quenchers and fire covers are to be kept unhampered and in steady working condition Checks must be plainly set apart so as to counteract slips, outings, and falls Records to be kept as a log record book Administration Maintenance and yearly keeps an eye ablaze dousers Mishap book and recording of any occurrences Laser issue log Laborers drew in with PC work are to be given peri>

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