Accounting for Decision Makers -Discussion Question Assignment

Accounting for ending Makers -Discussion Question - Assignment ExampleThe major weakness of Rio Valley involves low levels of sort out income. In 2014, the net income was $1,425,000. This is very low when compared to the revenue amounts in 2014 of $5,100,000. The low net income explains that the operating expenses form a immense proportion. The company should thus adopt strategies that ensure financial efficiency. One example entails, adopting production technology that minimizes tire out requirements, and thus reduces labor costs like salaries, motivation, retirement, and training expenses.One common size measure apply in analyzing dollar amounts is the percentage increase in gross revenue, based on 2010 as the base years. The sales level in 2014 is $5,100,000. This sales level illustrates 127.5% increase in the 2010 value of $4,000,000 (Al & Wayne, 2015). 127.5% of $4,000,000 = $5,100,000. El Paso should thus enclothe in Rio Valley, due to the sales revenue increasing trends. However, adequate strategies must be utilized in minimizing production expenses and also operating