Wesley Snipes a popular black actor was sentenced today to three years in jail for Tax evasion. He failed to file his tax returns for 1999-2004 and was convicted with three misdemeanors.
Snipes is known for his role in the movie Blade, which was about protecting humans from vampires. It really sucks for the upcoming movie, Gallowwalker, because he is the main character. Wonder what they’ll do now. Maybe hire Denzel Washington?
Don’t mess with the IRS, because they will get ya. And when they do, it’ll hurt real bad. He only owed the IRS around 400,000 and was convicted of three misdemeanors, but still got three years in prison. In a way, I’m glad to see that the juridical system doesn’t play favorites, even when it comes to C-list celebrities.
In 2000, BMW wanted to experiment with a new way of advertising. They decided instead of marketing their cars directly, they would make five short films and have their cars in them. The name of the series of Films is called The Hire, and they are surprisingly fun to watch! The films all last for six minutes and have the main character, Clive Owen, driving a BMW. But every film has a unique storyline and a different BMW.
Here is my favorite: The Hire- Star. This video has Madonna!
They spent 60 millions dollars total for five films, do you think it was worth it? The films are all very good, but stopped making them because it cost them too much money.
Tonight, I went to Amy’s Ice Cream and wasn’t too pleased with the service. The line wasn’t long when I got there, but it took at least 15 minutes to get my ice cream. I really don’t get how tough serving ice cream and shakes can be. But apparently the three employees had a hard time.
I was with two other people and we were going to order together. One person served all three of us, rather than all three helping. I don’t get the logic here, but one of the employees refused to serve me because there was somebody else helping my two friends. That employee also took the time to chat with a coworker, after turning me down. My first impression of Amy’s Ice Cream is that it has a really relaxed atmosphere. But that guy really ruined it for me, and made Amy’s Ice Cream seem like a haven where slouches can work. This is a perfect example of how a successful business gets bad publicity.
Let’s talk about making money.
Anyways even with bad employees, Amy’s Ice Cream is totally a cash cow. Their return of investment is so high, because the majority of their costs are fixed; therefore, they have a higher operating leverage, so any increase of sales will subsequently increase their net income.
The ice cream comes in three different sizes: Tiny, Small, and Large. Don’t be fooled into thinking the sizes correlate with the price: The tiny size is the cheapest and cost around $3.50. Each topping cost almost a dollar extra. They’re definitely marking it up the price by some huge percentages.
Here is what I predict Amy’s Ice cream income statement to look like:
Employee Salary
Days
Hours
Wages
30
10
7
Days
Sold Per Day
Tiny
30
100
3.5
Small
30
80
4.5
Large
30
60
5.5
Tiny
30
100
1.166667
Small
30
70
1.5
Large
30
50
1.833333
Revenue
Tiny
10500
Small
10800
Large
9900
Total
31200
Variable Expense
Tiny
3500
Small
3150
Large
2750
Total
9400
Contribution Margin
21800
Fixed Costs
Salaries
6300
Utilities
1000
Lease
10000
Insurance
1000
Total
18300
Net
3500
Operating Leverage
6.228571
Look at the operating leverage. Any change in sales will increase income 6.2 times! I could be wrong about the variable expenses, because I assumed they used 300% markup. It possibility could be even more, because I ice cream is inexpensive to make.
In conclusion, Amy’s Ice cream is a big cash cow for Amy, but it could be ruined by bad employees. After all, part of Amy’s Ice Cream is based of experience of their service, why else could they charge ridiculously high markups? Do ya’ll have any stories about receiving bad service?