Project 3



In your last business report, you recommended a strategic decision about the revenue target to make LGI competitive. In Project 3, you will help LGI's leadership move the company forward on a path toward a sustainable future. The company needs to restore the confidence of shareholders and other stakeholders by maintaining a satisfactory level of operating performance.

LGI, like all companies, needs robust earnings before interest, taxes, depreciation, and amortization (EBITDA). In other words, earnings must be sufficient to cover LGI's investing activities, debt service, and taxes—with a healthy profit left for reinvestment and distributions to stockholders

Your Project 3 business report will focus on strengthening EBITDA. To do this, you will analyze LGI's cost structure and determine how to increase productivity. These tasks are prerequisites for identifying a future investment (Project 4) and how to finance it (Project 5).


Your work will be evaluated using the competencies listed below.

· 3.1: Identify numerical or mathematical information that is relevant in a problem or situation.

· 3.2: Employ mathematical or statistical operations and data analysis techniques to arrive at a correct or optimal solution.

· 3.3: Analyze mathematical or statistical information, or the results of quantitative inquiry and manipulation of data.

· 10.3: Determine optimal financial decisions in pursuit of an organization's goals.

· 10.5: Develop operating forecasts and budgets and apply managerial accounting techniques to support strategic decisions.