Case ID: UV0383
Solution ID: 2455
Words: 778
Price $ 55

Data Services at Armistead Case Solution

Case Solution

This is a Darden case study. Data Services offers adaptable, measurable data administration and processing, and data storage to the fast food clients. Sales have shown a steady upwards trend, but the company has experienced a downturn in profits since it started operations half a decade back. The managerial team for Data Services management is hopeful about the company’s future. Armistead’s chief executive, the insurance company that has the ownership for Data Services, is pressured by the corporate team to swamp the subsidiary. A business evaluation is performed to facilitate the CEO in determining if the investment should be prolonged in Data Services, as well as in determining whether the organization is under control and well managed. Data and information in the case pertains to the daily operations of the company, its sales methods, profit and loss statement, revenue and expense evaluations, and cost distributions.

Excel Calculations

Monthly Value Added by Continuing Customer

Contribution Margin per Shift

Average Shifts per Customer

Total Contribution Margin per Customer

Recovery of Acquisition Costs

 Average Continuing Customers

Customers Acquired During the Year

Acquisition Costs per Customer ($)

Contribution per Customer per year ($)

Payback Period (denoted in years)

Breakeven Customers to Cover Costs

 Annual Customer Acquisitions (assumed)

Costs Incured in Customer Acquisition ($)

Contribution per Customer ($)

Breakeven Customer Base Required

Questions Covered