BU247 Chapter : bu247case.docx
Document Summary
After looking and calculating their revenues and expenses with the cvp analysis, I can say that the company is doing quite well since from looking in the exhibit 1 (given in mls), the company"s gross margin ratio is over 50% which indicates that it is performing well. They are also profitable since their operating margin in 2009 was. The decision is to buy the 20,000 grapes to use it for wine because it is very profitable to the company (last page exhibit 1 which shows the new changes with the increase of sales with the 20,000 grapes). Because of this, the company experiences a higher increase in their gross margin by 2. 6% and operating margin by 5. 5% which indicates that this is the right decision to go for. Nevw"s major issue is their expenses because it is too high at the moment.
