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Accounting Case Analysis: Electronic Commerce Network (A) & (B)




Complete all analysis contained in both parts of the case with work supported by an excel file. Analysis includes the following six questions;Due Wednesday at Noon PST;1. Review the Brainshark presentation on the analysis done in the A case to calculate the cost for ECN to ?capture? and ?load? a customer onto its network. Do you agree with the analysis? Would you suggest any improvements?;2. Assuming the analysis/improved analysis is correct, what actions would you take given that ECN is now in its second year and basically doing the same thing as before in this area?;3. Given that Exhibit 3 in the A case identified the ?people? cost for the nine technicians involved with running the transaction processing at $1,237,500 and the B case identified the ?system depreciation? for transaction processing at $1,350,000;Carefully read the chapter on Capacity Analysis and identify the productive capacity, the non-productive capacity, and the idle capacity.;4. With this information, calculate the cost to process a transaction for ECN.;5. Does this analysis suggest any changes in strategy for ECN?;6. Given questions 3, 4, and 5, if you were a venture capitalist would you finance the next round for ECN?


Paper#76340 | Written in 18-Jul-2015

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