Visual Materials and Enumeration System †Free Samples to Students

Question: Discuss about the Visual Materials and Enumeration System. Answer: Introduction The purpose of this paper is to generate a set of recommendations, raise relevant ethical issues, preparation of proper visual materials and enumeration of calculation regarding the expansion of North Land Winery. These aspects will be based on the two options provided in the context. In option one, the North Land Winery can utilize the aspect of wine representatives where the costs for wine representatives would be proportionate to the volume of product anticipated to be sold (Robinson, 2015). In this option, the underlying commission is estimated to be at 10% of gross sales. On the other hand, option two suggests that North Land Winery should open their own sale office. The ongoing communication expense is estimated to be $ 100,000. Then the cost per employee is estimated to be $ 25,000 as basic salary and a commission of 5% incentive compensation. Finally, individual workers could be expected to generate $ 1,000,000 in sales. With all those factual basis, as a business analyst, I am in a position to generate viable calculations and give the appropriate recommendation on the best option to take. To start with, it is important to assert that North Land Winery are family-based winemakers. During the formation of this company, the family aimed at establishing a well-organized and solid winemaker whose headquarter was situated in Wollongong, NSW (Mills, 2007). Within time, North Land Winery was expanding due to the availability of markets and therefore the vintners have incorporated the idea of distributing North Land Winery wine product to several markets including Ontario based in Eastern-Canada. At present, the main innovative product made by NLW involves the popular chardonnay grapes that grow very aggressively in areas with wild fires commonly labeled deep burn. Again, the soil aged merlots appear on the top list of the most innovative product produced by North Land Winery. These products have generated wines with ability to exploit wild fires and have been able to achieve the wines smoky characteristics (Johnson, 2013). This type of flavor is very popular in foods and beve rages companies based in North America (Skelton, 2009). In that connection, a perfect market will be a guarantee to many Canadian Plates due to the high correlation to flavor characteristics in the North America food and beverage. This section will indicate the calculation relating to option one and option two. From option one, the wine representative will be paid a commission of 10% of gross sale. If the gross sale made by each wine representative is estimated to be $ 1,000,000, then wine representative will be paid the following amount as a commission. Wine representative commission = 10% of $1,000,000 = 0.1 $1,000,000 = $100,000 per each wine representative. Therefore, the total cost of commission to be paid wine representative highly depend on the number of wine representatives hired and the minimum gross sale each wine representative is anticipated to sell in a given timeframe. The total cost is calculated as; Total cost = the number of wine representatives 10% of gross sale. On the other hand, option two involves a concrete calculation to determine the total cost NLW are expected to pay if they chose to set their own office. Under option two, the following calculation follows in calculation of the total cost of setting an office. In North Land Winery, the number of employees are unknown but each employee is estimated to be paid $ 25,000 after generating $ 1,000,000 sales. Having asserted that, a basic rule can be used to check the correlation between the two. Since the number of employees is unknown, business analyst applies the general arithmetic equation: cost of own office = cost of sale wine representative. This equation assumes that the two options has a perfect positive correlation are the company become indifferent in choosing either option. Costs of setting up own office and ongoing communication + number of employees (5% of gross sales + employees basic salary) = Number of employees 10% of gross sales. Again, $ 100,000 + number of employees (sales volume selling price 0.05 + $ 25,000) = number of employees (0.10 selling price sales volume). Number of employees sales volume selling price (0.10-0.05) = number of employees $ 25,000 + $ 100,000. Finally, number of employees selling price sales volume = $ 500,000 number of employees + $ 2,000,000. From the above calculations, there some instances when both sides become equal. This means there is a perfect positive correlation between option one and option two. This point where right hand side equal the left hand side is called the indifference point. The indifference curve between QC for cost of setting own office and Qw for wine representative. Recommendations Since there occur an indifference point, it simple means that North Land Winery is indifferent on which option to adopt. However, as a business analyst, it is quite in order to give an alternative on what need to be done. As noted in the above calculation, all the values used are the annual estimates. Therefore, I recommend North Land Winery to conduct the annual probability test (Bird, 2011). This probability test asserts that the ratio of right hand side to left hand side 1 year is able to find out the amount of time it is estimated to take for setting own office to have a perfect positive correlation to the cost of sales (Helsley, 2010). If this takes longer, then it is justifiable to use option one and the reverse is also true. The graph above represents the indifference curve on QC for cost of own office and Qw for wine representative. References Bird, D. (2011). Understanding Wine technology: the Science of Wine Explained. Board and Bench Publishing. Helsley, A.J. (2010). A History of North Carolina Wine from Scuppernong to Syrah. The History Press. Johnson, H. (2013). The World Atlas of Wine. Mitchell Beazley. Mills, J. (2007). A Guide to North Carolinas Wineries. John F. Blair, publisher. Robinson, J. (2015). The Oxford Companion to Wine. Oxford University Press. Skelton, S. (2009). Viticulture: an Introduction to Commercial Grape Growing for Wine Production. S.P.Skelton Ltd.