Prepare a product-by-value analysis for the following products, and given the po
ID: 392307 • Letter: P
Question
Prepare a product-by-value analysis for the following products, and given the position in its life cycle, identify the issues likely to confront the operations manager, and his or her possible actions. Product Alpha has annual sales of 750 units and a contribution of $3,500 per unit; it is in the introductory stage. Product Bravo has annual sales of 2,500 units and a contribution of $3,000 per unit; it is in the growth stage. Product Charlie has annual sales of 3,500 units and a contribution of $2,000 per unit; it is in the decline stage Product-by-value analysis Product Alpha Bravo Charlie Individual dollar contribution Total annual dollar contributionExplanation / Answer
Total annual dollar contribution = Individual dollar contribution * Units
Alpha:
Individual dollar contribution = $3500
Total contribution = 3500 * 750 = $2,625,000
Bravo:
Individual dollar contribution = $3000
Total contribution = 3000 * 2500 = $7,500,000
Charlie:
Individual dollar contribution = $2000
Total contribution = 2000 * 3500 = $7,000,000
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