Read the case study at the end of chapter three in your text (pages 52-53). Using knowledge learned from the chapter, supplemental notes and videos, as well as secondary research, answer the following questions (these are different from the textbook questions, so be sure to answer the ones below):
- In 2012, identify which two warehouses were the top performing and which two showed the poorest performance. Explain your answer.
- Which of the warehouses, in your opinion, performs the best for the Brant Company? How did you come up with this and what could make the warehouses perform even better?
- From the underperforming warehouses, which two would you recommend be considered to be replaced with another warehouse? How did you determine this and, out of the two, which would be your choice to replace and why?
- Forecast what the firm will spend for warehousing from June – December. Show your work and explain the process.
- Use the 2012 income statement and balance sheet to complete a strategic profit model for J.Q.
- Holding all other information constant, what would be the effect on ROA for 2013 if warehousing costs declined 15 percent from 2012 levels?
