This paper circulates around the core theme of Roxbury Manufacturing Company is a privately owned business together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
CASE 2Roxbury Manufacturing Company is a privately owned business. Products manufactured by Roxburyhad been doing very well until the year 2011. Last two years have seen a steady decline in sales andprofit. If this declining trend continues, the company might come under financial distress. Incomestatements for the last two years are given below.Year 1SalesLess Variable ExpensesTotal Contribution MarginLess Fixed ExpensesNet Income before taxesPercentYear 2Percent$ 4,000,000100$ 3,600,000100$ 3,000,00075$ 2,700,00075——————————————————————-$ 1,000,00025$ 900,00025$ 500,000$ 500,000——————————————————————–$ 500,000$ 400,000==========================================Mr. Creighton, the owner of the company is baffled that only a ten percent decline in sales hasresulted in a twenty percent decline in profits. He asks you to explain to him how in spite ofmaintaining efficiency in operations by keeping variable expenses and contribution margin at the samepercentage level, he has experienced a greater percentage decline in profits.
