{"id":10830,"date":"2024-12-09T22:19:32","date_gmt":"2024-12-09T11:19:32","guid":{"rendered":"https:\/\/casestudyhelp.com\/sample-questions\/?p=10830"},"modified":"2024-12-09T22:19:32","modified_gmt":"2024-12-09T11:19:32","slug":"unit-6-assignments-practical-case-tecosa","status":"publish","type":"post","link":"https:\/\/casestudyhelp.com\/sample-questions\/unit-6-assignments-practical-case-tecosa\/","title":{"rendered":"Unit 6 Assignments &#8211; Practical Case: Tecosa"},"content":{"rendered":"<p><strong>Description<\/strong><\/p>\n<p>This activity is mandatory and, therefore, evaluable, to be developed individually.<\/p>\n<p><strong>Approach<\/strong><\/p>\n<p>Textil y confecciones, SA (TECOSA) is a textile company that has two Business Units (BU): Sports Equipment and Upholstery. You are the Director of the Sports Equipment BU, which, as of 31.12.2020, presents the following financial information:<\/p>\n<p style=\"text-align: center;\"><img decoding=\"async\" loading=\"lazy\" class=\"aligncenter size-full wp-image-10831\" src=\"https:\/\/casestudyhelp.com\/sample-questions\/wp-content\/uploads\/2024\/12\/Tecosa.png\" alt=\"Tecosa\" width=\"285\" height=\"319\" srcset=\"https:\/\/casestudyhelp.com\/sample-questions\/wp-content\/uploads\/2024\/12\/Tecosa.png 285w, https:\/\/casestudyhelp.com\/sample-questions\/wp-content\/uploads\/2024\/12\/Tecosa-268x300.png 268w\" sizes=\"(max-width: 285px) 100vw, 285px\" \/><\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/casestudyhelp.com\/MyOrder.php\"><img decoding=\"async\" loading=\"lazy\" class=\"aligncenter size-full wp-image-10765\" src=\"https:\/\/casestudyhelp.com\/sample-questions\/wp-content\/uploads\/2024\/10\/best-academic-assistance.webp\" alt=\"\" width=\"800\" height=\"200\" srcset=\"https:\/\/casestudyhelp.com\/sample-questions\/wp-content\/uploads\/2024\/10\/best-academic-assistance.webp 800w, https:\/\/casestudyhelp.com\/sample-questions\/wp-content\/uploads\/2024\/10\/best-academic-assistance-300x75.webp 300w, https:\/\/casestudyhelp.com\/sample-questions\/wp-content\/uploads\/2024\/10\/best-academic-assistance-768x192.webp 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/a><\/p>\n<table>\n<tbody>\n<tr>\n<td width=\"270\">Sales<\/td>\n<td width=\"270\">24.000.000<\/td>\n<\/tr>\n<tr>\n<td width=\"270\">Cost of sales<\/td>\n<td width=\"270\">14.400.000<\/td>\n<\/tr>\n<tr>\n<td width=\"270\">Contribution Margin<\/td>\n<td width=\"270\">9.600.000<\/td>\n<\/tr>\n<tr>\n<td width=\"270\">Cost Structure<\/td>\n<td width=\"270\">800.000<\/td>\n<\/tr>\n<tr>\n<td width=\"270\">Amortization<\/td>\n<td width=\"270\">750.000<\/td>\n<\/tr>\n<tr>\n<td width=\"270\">EBIT<\/td>\n<td width=\"270\">8.050.000<\/td>\n<\/tr>\n<tr>\n<td width=\"270\">Financial Expenses<\/td>\n<td width=\"270\">1.100.000<\/td>\n<\/tr>\n<tr>\n<td width=\"270\">EBIT<\/td>\n<td width=\"270\">6.950.000<\/td>\n<\/tr>\n<tr>\n<td width=\"270\">Corporate Tax<\/td>\n<td width=\"270\">2.085.000<\/td>\n<\/tr>\n<tr>\n<td width=\"270\">EAT<\/td>\n<td width=\"270\">4.865.000<\/td>\n<\/tr>\n<tr>\n<td width=\"270\">&nbsp;<\/td>\n<td width=\"270\">&nbsp;<\/td>\n<\/tr>\n<tr>\n<td width=\"270\">Non-current assets<\/td>\n<td width=\"270\">40.000.000<\/td>\n<\/tr>\n<tr>\n<td width=\"270\">Working capital<\/td>\n<td width=\"270\">3.000.000<\/td>\n<\/tr>\n<tr>\n<td width=\"270\">&nbsp;<\/td>\n<td width=\"270\">&nbsp;<\/td>\n<\/tr>\n<tr>\n<td width=\"270\">Net investment<\/td>\n<td width=\"270\">43.000.000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p>Carry out the planning for the 2021 financial year, in which the following hypotheses are considered:<\/p>\n<ul>\n<li>Forecast of quantity sold: 1.5 million units<\/li>\n<li>Your product has a sales price of \u20ac20\/unit, with variable costs of \u20ac12\/unit<\/li>\n<li>The Structure Costs borne by your BU are estimated at \u20ac1 million.<\/li>\n<li>Average collection period from customers: 30 days<\/li>\n<li>The average period for selling merchandise 60 days<\/li>\n<li>The average period for paying suppliers 45 days<\/li>\n<li>To calculate Working Capital, you can ignore Operating Cash, given its low weight in Current Assets<\/li>\n<li>To cope with the expected increase in demand, you are considering building a new production plant, which will require investments in Non-Current Assets worth \u20ac50 million.<\/li>\n<li>Considering current investments and assets, depreciation is estimated at \u20ac1.3 million.on<\/li>\n<li>Considering the risk of the business and the financial structure, the Financial Director of TECOSA has informed you that the opportunity cost of capital is 7.84%.<\/li>\n<\/ul>\n<p>Assuming a corporate tax rate of 30%,<\/p>\n<p><strong>A.<\/strong> Calculate the operating profit (EBIT), ROA, ROCE, and EVA for your BU budget.<\/p>\n<p>Finally, due to the significant reduction in consumption, the amount of product actually sold has been reduced by 1\/3 of what was planned. This allows you to postpone the construction of the new manufacturing plant that you had planned to build.<\/p>\n<p><strong>B.<\/strong> Evaluate your management based on: Operating Profit (EBIT), ROA, ROCE and EVA. Which magnitude seems most consistent with the company&#8217;s value creation objective?<\/p>\n<p><strong>C.<\/strong> Your remuneration as Director of the Sports Equipment Unit has a variable component that is linked to the annual EVA of your Unit, following the following scale (% bonus referred to the fixed salary):<\/p>\n<ul>\n<li>Actual EVA lower than planned \u27f6 bonus = 0<\/li>\n<li>Actual EVA equal to or higher than planned by less than 10% \u27f6 bonus = 20%<\/li>\n<li>Actual EVA higher than planned by more than 10% \u27f6 bonus = 40%<\/li>\n<\/ul>\n<p>What measures would you propose to increase the value contributed by your Unit? Quantify some.<\/p>\n<p><strong>D.<\/strong> Assuming that fixed costs and investment do not vary with the quantity produced, considering the \u201creal\u201d scenario,<\/p>\n<ul>\n<li>Calculate the minimum turnover of the Sports Equipment BU so that it does not destroy value for the company. This is the break-even point from a value-creation perspective.<\/li>\n<li>Compare the result obtained with the \u201caccounting\u201d break-even point. What is the reason for the difference?<\/li>\n<\/ul>\n<p><strong>E.<\/strong> Seeing that the end of the year is approaching and the objectives will not be met, you decide to sell some assets (machinery that you are not currently using), worth \u20ac10 million. Check that this will allow you to collect the incentives, taking into account the criteria set out in section (c).<\/p>\n<p>Do you think that the Company has really generated value with this decision? How could you resolve an apparent inconsistency between the remuneration criterion and the creation of value for the company?<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Get AI-Free Assignment Writing for Unit 6 Practical Case: Tecosa!<\/strong><\/p>\n<p>Need accurate and customized <a href=\"https:\/\/casestudyhelp.com\/sample-questions\/\"><strong>assignment homework answers<\/strong><\/a> for Tecosa\u2019s case study? Casestudyhelp.com offers <a href=\"https:\/\/casestudyhelp.com\/assignment-help\/\"><strong>AI-free assignment writing<\/strong><\/a> tailored to your specific needs. Our expert writers ensure in-depth analysis, plagiarism-free content, and timely delivery to help you excel in your coursework.<\/p>\n<p>\u2705 Expert-crafted solutions<br \/>\n\u2705 AI-free and 100% unique content<br \/>\n\u2705 Fast and reliable service<\/p>\n<p>Don\u2019t let the stress pile up\u2014<strong><a href=\"https:\/\/casestudyhelp.com\/MyOrder.php\">Order your Tecosa assignment answers now<\/a>!<\/strong><\/p>\n<script type=\"text\/javascript\" charset=\"utf-8\" src=\"http:\/\/w.sharethis.com\/widget\/?wp=6.2.9\"><\/script>","protected":false},"excerpt":{"rendered":"<p>Description This activity is mandatory and, therefore, evaluable, to be developed individually. Approach Textil y confecciones, SA (TECOSA) is a textile company that has two Business Units (BU): Sports Equipment and Upholstery. You are the Director of the Sports Equipment BU, which, as of 31.12.2020, presents the following financial information: Sales 24.000.000 Cost of sales [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2775],"tags":[],"_links":{"self":[{"href":"https:\/\/casestudyhelp.com\/sample-questions\/wp-json\/wp\/v2\/posts\/10830"}],"collection":[{"href":"https:\/\/casestudyhelp.com\/sample-questions\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/casestudyhelp.com\/sample-questions\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/casestudyhelp.com\/sample-questions\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/casestudyhelp.com\/sample-questions\/wp-json\/wp\/v2\/comments?post=10830"}],"version-history":[{"count":1,"href":"https:\/\/casestudyhelp.com\/sample-questions\/wp-json\/wp\/v2\/posts\/10830\/revisions"}],"predecessor-version":[{"id":10832,"href":"https:\/\/casestudyhelp.com\/sample-questions\/wp-json\/wp\/v2\/posts\/10830\/revisions\/10832"}],"wp:attachment":[{"href":"https:\/\/casestudyhelp.com\/sample-questions\/wp-json\/wp\/v2\/media?parent=10830"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/casestudyhelp.com\/sample-questions\/wp-json\/wp\/v2\/categories?post=10830"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/casestudyhelp.com\/sample-questions\/wp-json\/wp\/v2\/tags?post=10830"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}