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Transcription of this question: LuxEc1airage (LE)LuxEclairage (LE) was founded by Maurice Dahman, an Electrical Engineer from Algeria.He has a degree in electrical engineering and is fluent in French. In 2007, after 12 years workingfor a large lighting business in Luxembourg, Maurice established I.E. His business producesenergy-efficient parts for various indoor and outdoor lighting.LE has a unique selling point (USP): the lowest price in the market. Although most sales are inEurope, all production is in Algeria, where costs are much lower. As a result, growth in sales revenuehas been rapid and significant, and LE has gained market share each year.Selected financial information for LE (all figures in €111):Sales revenueCost of goods soldGross rofitNet fit before interest and taxCreditorsStockDebtorsTotal current assetsTotal current liabilities20092811.×588.110.24.323_5615.5211.0With the rapid growth in sales revenue since it was first established, LE has experienced somediseconomies of scale, especially in the administration Of the business. Production occurs in 12 smallfactories located around the city Of Algiers, rather than in one large factory. Coordination betweenfactories and the administrative offlces is, therefore, complicated, and the internet is sometimesunavailable. Whereas French is the language used by managers and customers Of LE, the workersgenerally speak only basic French and prefer to speak Arabic. In addition, patterns Of non-verbalcommunication differ widely between Europe and Algeria.(a)(b)(c)(d)(e)Define the term market share.Describe one diseconomy Of scale for LECalculate for LE:(i) the gross profit for 2009 (figure Y).(ii) the gross profit margin for 2013.(iii) the stock turnover for 2009 and 2013.(iv) the current ratio for 2009 and 2013.(v) the acid test (quick) ratio for 2009 and 2013.Comment on the decline in liquidity at LEAnalyse communication at I.E.[2 marks][2 marks][l mark][l mark][2 marks][2 marks][2 marks][3 marks][5 marks]

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