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 $2,000 per unit; it is in the introductory stage. Product Bravo has annual sales of 2,000 units and a contribution of $3,000 per unit, it is in the growth stage. Product Charlie has annual sales of 3,000 units and a contribution of $1,500 per unit; it is in the decline stage. Product Bravo Alpha Charlie Individual dollar contribution $ Product-by-value analysis Total annual dollar contribution.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter8: Cost Analysis
Section: Chapter Questions
Problem 5E
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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 $2,000 per unit; it is in the introductory stage. Product Bravo has annual
sales of 2,000 units and a contribution of $3,000 per unit, it is in the growth stage. Product Charlie has annual sales of 3,000 units and a contribution of $1,500 per unit;
it is in the decline stage.
Product
Bravo
Alpha
Charlie
Individual dollar contribution
Product-by-value analysis
Total annual dollar contribution
Transcribed Image Text: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 $2,000 per unit; it is in the introductory stage. Product Bravo has annual sales of 2,000 units and a contribution of $3,000 per unit, it is in the growth stage. Product Charlie has annual sales of 3,000 units and a contribution of $1,500 per unit; it is in the decline stage. Product Bravo Alpha Charlie Individual dollar contribution Product-by-value analysis Total annual dollar contribution
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