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Toy World Inc case analysis

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its toy


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Hobby stores typically sell board games, remote controlled toy vehicles and aircraft, rocket sets, and painting tools. Some example of hobby stores include Hobby Town USA and Galaxy Hobby.


Why is there a difference between net and gross profit?

Gross profit is the total amount of money that you get. And net profit is the amount left after you subtract your costs. For example, if you sold a toy on Ebay for 100.oo dollars. Your gross profit would be 100. You spent 30 dollars on the items and 6 dollars to list on ebay. subtract your expenses from you gross profit and then that is your NET Profit.


What is a cost unit in cost accounting?

Cost unit is a unit of production, service or time or combination of these, in relation to which costs may be ascertained or expressed. Ex: Toy making: Batch costing, unit of cost: per batch (ex: $500 per batch) Advertising: Job Costing, unit of cost: per Job Hospital: Operating costing, unit of cost: per patient day


What is the difference between price and cost?

From a Seller's perspective: Price is what you sell something for, cost is what you paid for it or what it cost to produce it. The difference is referred to as margin or gross profit.From a Buyer's perspective: Price is what you initially pay for an item. Cost is what it takes to maintain the item until it reaches Mean Time Between Failure (MTBF) also referred to as Life Expectancy (see UL rating to get MTBF). Example: Company Apurchases a surveillance system (whose DVR and Cameras have an MTBF rating of 6 years) for a price of $50,000.00. Company B purchases a surveillance system (whose DVR and Cameras have an MTBF rating of 18 years) for a price of $75,000.00. Based on the MTBF ratings Company A will have to purchase their surveillance system three times for an actual cost of $150,000.00 over the 18 years. Then you factor the time value of money on your savings for your final evaluation on Price versus Cost. Assuming a 6% interest rate over 18 years you would have a total of $75,000.00. Company A's Cost is $25,000 more (not counting the company labor to coordinate the system change) So it is important to evaluate MTBF in order to make the most economical purchase.

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John W. Amerman has written: 'The story of Mattel, Inc' -- subject(s): Case studies, History, Inc Mattel, Toy industry


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The address of the Top Fun Aviation Toy Museum Inc is: Po Box 700, Dracut, MA 01826-0700


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Toy World was created in 1981.


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The world's largest toy company, Mattel, Inc. designs, manufactures, markets, and distributes a wide variety of toy products in 150 countries.For the source and more detailed information concerning this subject, click on the related links section (Answers.com) indicated below.