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Township Motors Case Solution

Solution Id Length Case Author Case Publisher
1201 300 Words (2 Pages)
This solution includes: A Word File A Word File and An Excel File An Excel File

Township Motors is a franchised dealership, which is prevailing in competitive environment and having a little impact on the labor market of the town in which it is located. The company is currently using the land which is on lease and pays the payments of lease on monthly basis. The company is above average in earning the profits as it has the annual gross profit percentage of 60%.

Following questions are answered in this case study solution

  1. Current Situation

  2. Proposal by Craft

  3. Financing for the Project

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Case Analysis for Township Motors

Proposal by Craft

Craft along with his body shop foreman, came up with a proposal of having a new body shop with different structures, in which he concentrates on establishing a cleaner environment so that I became more pleasant and convenient for the company staff and the customers to interact. Furthermore, the new proposed structure of the body shop includes innovative designs that included carpeted reception, heated appraisal area, and the locker and lunchroom facilities. Moreover, for the cleaner environment, the painting area would be separated by the firewall from the metalworking area.

Financing for the Project

For the financing of the proposed project, the company has two different options. One is to finance the project by issuing a bond for $850000 and 12% interest payment along with the principal has to be paid at the maturity. The other option for financing the project is to take the building on lease for ten years and make the lease payments of $240000 per year.

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