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Management Information System Case Study for "Dirt Bikes USA"

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Dirt Bikes USA Case Study Chapter 1Management Overview of Dirt Bikes Introduction of Dirt Bikes Dirt Bikes USA, a small company headquartered in Carbondalewas founded in 1991 by Car Schmidt and Steven McFadden, two young but experienced bikers with engineering backgrounds who saw that dirt bikes were becoming very popular in the Unites States as both sporting and racing motorcycles. In the early time, they developed frames for dirt bikes that were more suited to off-road handling and used it as a model to build their own dirt bikes models by using motorcycle engines manufactured by other companies, such as Honda and Rotax Motors of Austria. When Steven got the first place in a race, other peoples began to very interested in their …show more content…

Meanwhile, the sales revenue decreased 6.1%. However, Dirt Bikes' cost increased too quickly to almost 10%. (See Figure 1.5 and 1.6) Figure 1.3 Statement of Income over three years Consolidated Satements of Income (in 000') 2002 2001 2000 Revenue Net sales 60,144 64,063 61,529 Cost of goods sold 45,835 43,155 41,072 Gross profit/(loss) 14,309 20,908 20,457 Gross margin 23.00% 32.60% 33.24% Operating expenses Sales and marketing 4,733 4,537 3,944 Engineering and product development 3,141 2,992 2,339 General and administrative 1,913 1,601 1,392 Total operating expenses 9,787 9,130 7,675 Operating income/loss 4,522 11,778 12,782 Other income/expense Interest income/expense 1,747 175 80 Other income/(expense) -6,254 -2,914 -3,080 Income before provision for income taxes 15 9,039 9,782 Income taxes 1,459 1,729 535 Net income/(loss) -1,444 7,310 9,247 Net margin 2.40% 11.41% 15.03% Figure 1.4 Domestic VS. International Sales Figure1.5 Cost of goods sold-Sales revenue Ratio over three years 2000 2001 2002 Sales 61,529 64,063 60,144 Cost of goods sold 41,072 43,155 45,835 Rate (100%) 66.75 67.36 76.21 Figure1.6 Cost of goods sold-Sales revenue Ratio over three years 2000 2001 2002 Sales 61,529 64,063 60,144 Cost of goods sold 7,675 9,130 9,787 Rate (100%) 12.47 14.25 16.27 Situation in sales Sales in two models, Enduro 250 and Enduro 550, are reduced, especially in Enduro550 to 10.57%. Other both Moto

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