Research + answers for the Space & Light studios case study questions
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Course
Accounting for managers
Institution
Katholieke Universiteit Leuven (KU Leuven)
Book
Horngren\'s Cost Accounting
written information for the Space & Light Studio case study. All the collected information to form an answer to all the case study questions. (+ Answers)
Test Bank for Horngren's Cost Accounting 17th Edition by Horngren, Charles T., Datar, Srikant M., Rajan, Madhav Latest Verified Review 2024 Practice Questions and Answers for Exam Preparation, 100% Co...
Test Bank for Horngren's Cost Accounting 17th Edition by Horngren, Charles T., Datar, Srikant M., Rajan, Madhav Latest Verified Review 2024 Practice Questions and Answers for Exam Preparation, 100% Co...
Test Bank for Horngren's Cost Accounting 17th Edition by Horngren, Charles T., Datar, Srikant M., Rajan, Madhav Latest Verified Review 2024 Practice Questions and Answers for Exam Preparation, 100% Co...
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Katholieke Universiteit Leuven (KU Leuven)
Master In Management
Accounting for managers
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Assignment Accounting for managers: Case study
1. QUESTION 1
Write the case synopsis (less than 200 words)
ANSWER
The case study states that how a small business of yoga classes called Space and Light studios
developed overtime under the management of two great leaders Lynn Yeo and Sumei Shum.
The main competitor of Space and Light studios according to the case study was Pure Yoga.
The case study clearly mentioned how pure yoga operated in the market and compared it
with the SLS. Space and Light studios firstly introduced and came into the market with
Ashtanga yoga which is a yoga based on the 8 principles with different postures in 2001 and
2003. Finally after some years SLS was owned, controlled and managed by the two
personalities who were the sole reasons for the development of these classes Lynn Yeo and
Sumei Shum. Under there management the after some time the revenue per person rose up
by $5 (From $10-$15). After working and developing their potholes the company managed
to improve and increase their average revenue per person to $21 per visit by April-May
2013. The two classes which were the Salt Cave and private classes became the most
renowned out of the all and they somehow managed to generate a average revenue per visit
of $130. So this is how the SLS started from the bottom and improved itself to make a
reputation in the market under the leadership of Lynn and Sumei.
2. QUESTION 2
Estimate the current profit figures of space and light studio (SLS) from December 2012 to May
2013 to evaluate the viability of the business. (Excel spreadsheet available with the case)
ANSWER
Gross Profit Ratio:
(Gross Profit / Net Sales) * 100
= () * 100
= 42.61 %
Total Sales = $ 95460
Gross Profit : Revenue - Cost of goods sold
=$(95460 - 54780)
= $40600
Net Profit Ratio: (Net Profit / Net Sales) * 100
= (14201.) * 100
= 14.87 %
Net Profit = $(40600 - 26398.5)
= $ 14201.5
CONCLUSION :
The conclusion of the ratios calculated comes out to be that the company is working great and
is not facing any losses hence the company is trying to work hard and increase its revenue.
,
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