1) It is very important that Michael stipulate his four criteria for the business. Michael wants to do something that he enjoys and he has had previous experience in a related industry. His customer base will probably be from the people in his community such as school groups, church groups and he is offering them a good deal with quality product at a lower price, helping the community. And as his company progesses and grows he will be able to contribute more and more. I also think that it is important that he sets goals for his company such as the minimumnet income of $25,000 so that he and his company have something to strive for and a definitive way of assessing their progress.

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Case 6 Sweats Galore

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Case 6 Sweats Galore

Answer Key: Case 6 - Sweats Galore

Question 1 It's always important to set goals to measure the success of any business. However, the first three goals are more of a mission statement while the fourth is an objective for the company. The problem is there no plan and one objective. What is he going to do if the company doesn't net the $25,000? Or what if it nets the $25,000 but there is not enough cash to sustain the business? There needs to be more objectives to make allowances for these types of situations. There needs to be a plan of action where goals change from period to period. Otherwise, the business cannot succeed.

Question 2 Hi-Lo Maintenance Units Cost
September 8,000 $1,914.00
January 2,000 $1,716.00
Difference 6,000