Effect of the industry-market-size factor on operating income | ||
Of the 4000-unit increase in sales from 3000 to 7000 units, 15% or 450 (15% x 3000) units is due to growth in market size, and 3550 (4000 - 450 ) units is due to an increase in market share | ||
Change due to industry-market-size = 120,000 x 450/4000 | $ 13,500.00 | F |
Change due to product differentiation = 144160 + 120,000 x (4000-450)/4000 | $ 250,660.00 | F |
Change due to cost leadership | $ 322,000.00 | F |
Change in operating income | $ 586,160.00 | F |
Kendrick has been successful in implementing its product differentiation strategy.The increase in operating income during 2017 was due to product differentiation, It increases its price to gain market share also benefit future benefits.Kendrick change in operating income in 2017 was helped by a growth in the overall market |
Kendrick Company manufactures a DVD player called Orlicon. The company sells the player to discount stores...
Truman Company manufactures a DVD player called Orlicon. The company sells the player to discount stores throughout the country. Click the icon to view additional information.) Information about the current period (2017) and last period (2016) follows. Click the icon to view the information for 2017 and 2016.) Suppose that during 2017, the market for DVD players grew 10%. All increases in market share (that is, sales increases greater than 10%) and decreases in the selling price of the Orlicon...
Mason Company manufactures a DVD player called Orlicon. The company sells the player to discount stores throughout the country. This player is significantly less expensive than similar products sold by Mason's competitors, but the Orlicon offers just DVD playback, compared with DVD and Blu-ray playback offered by competitor Riley Manufacturing. Furthermore, the Orlicon has experienced production problems that have resulted in significant rework costs. Riley's model has an excellent reputation for quality. As a result of the actions taken, quality...
Suppose that during 2017, the market for Mason's special-purpose machines grew by 6%. All increases in market share (that is, sales increases greater than 6%) are the result of Mason's strategic actions. Mason Corporation makes a special-purpose machine, D4H, used in the textile industry. Mason has designed the D4H machine for 2017 to be distinct from its competitors. It has been generally regarded as a superior machine. Mason presents the following data for 2016 and 2017. E: (Click the icon...
Marston Corporation makes a special-purpose machine, D4H, used in the textile industry. Marston has designed the D4H machine for 2017 to be distinct from its competitors. It has been generally regarded as a superior machine. Marston presents the following data for 2016 and 2017. (Click the icon to view the data.) (Click the icon to view additional information.) Read the requirements. Requirement 1. Calculate the operating income of Marston Corporation in 2016 and 2017. 2016 Revenues Costs Direct material costs...
Memorial Corporation makes a special-purpose machine, D4H, used in the textile industry. Memorial has designed the D4H machine for 2017 to be distinct from its competitors. It has been generally regarded as a superior machine. Memorial presents the following data for 2016 and 2017. (Click the icon to view the data.) (Click the icon to view additional information.) Read the requirements. Requirement 1. Calculate the operating income of Memorial Corporation in 2016 and 2017 2016 * Requirements Revenues Costs Direct...
Memorial Corporation makes a special-purpose machine, D4H, used in the textile industry. Memorial has designed the D4H machine for 2017 to be distinct from its competitors. It has been generally regarded as a superior machine. Memorial presents the following data for 2016 and 2017. i (Click the icon to view additional information.) E(Click the icon to view the data.) Read the requirements Requirement 1. Calculate the operating income of Memorial Corporation in 2016 and 2017. 2016 i Requirements Revenues Costs...
E12-26 (similar to) Question Help Marshall Corporation makes a special-purpose machine, D4H, used in the textile industry. Marshal has designed the D4H machine for 2017 to be distinct from its competitors. It has been generally regarded as a superior machine. Marshall presents the following data for 2016 and 2017 囲(click the icon to view the date.) 。( Click the icon to view additional information.) Data Table Read the requirements. Requirement 1. Calculate the operating income of Marshall Corporation in 2016...
How do I answer k, l, and m?Following a strategy of product differentiation, Instruments Inc. makes a handheld calculator, II 400. Instruments Inc. presents the following data for the years 1 and 2: Year 1 Year 2Units of II400 produced and sold 50,000 52,500Selling price $40 $44Direct materials (kilograms) 150,000 153,375Direct materials costs per kilogram $4.00 $4.40Manufacturing capacity for II400 (units) 62,500 62,500Total manufacturing conversion costs $500,000 $550,000Manufacturing conversion costs per unit of capacity $8.00 $8.80Selling and customer-service capacity (customers) 30 29Total selling and customer-service costs $360,000 $362,500Cost/ customer of selling & customer-service capacity $12,000 $12,500 Instruments Inc. produces no defective...
Following a strategy of product differentiation, Despotovich Corporation makes a high-end Computer Monitor, CM12. Despotovich Corporation presents the following data for the years 1 and 2: Year 1 Year 2 Units of CM12 produced and sold 5,000 5,500 Selling price $400 $440 Direct materials (pounds) 15,000 15,375 Direct materials costs per kilogram $40 $14 Manufacturing capacity for CM12 (units) 10,000 10,000 Total manufacturing conversion costs $500,000 $550,000 Manufacturing conversion costs per unit of capacity $50 $55 Selling and customer service...
Blue Technologies manufactures and sells DVD players. Great Products Company has offered Blue Technologies $ 20 per DVD player for 10,000 DVD players. BlueTechnologies' normal selling price is $ 33 per DVD player. The total manufacturing cost per DVD player is $ 19 and consists of variable costs of $ 12 per DVD player and fixed overhead costs of $ 7 per DVD player. (NOTE: Assume excess capacity and no effect on regular sales.) Should Blue Technologies accept or reject...