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17 November, 17:09

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 500 units and a contribution of $ 3 comma 500 per unit; it is in the introductory stage. Product Bravo has annual sales of 2 comma 500 units and a contribution of $ 2 comma 500 per unit; it is in the growth stage. Product Charlie has annual sales of 4 comma 500 units and a contribution of $ 2 comma 000 per unit; it is in the decline stage. Product-by-value analysis Product Individual dollar contribution Total annual dollar contribution Alpha $ nothing $ nothing Bravo $ nothing $ nothing Charlie $ nothing $ nothing

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  1. 17 November, 17:52
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    Product Individual Dollar contribution Total annual dollar contribution

    Alpha $3,500 $1,750,000

    Bravo $2500 $6,250,000

    Charlie $2000 $9,000,000

    Explanation:

    According to the scenario, the given data are as follows:

    1. Alpha annual sales = 500 units

    Alpha contribution per unit = $3,500

    So, Individual dollar contribution = Alpha contribution per unit

    Individual dollar contribution = $3,500

    and, Total annual dollar contribution = Alpha contribution per unit * Alpha annual sales

    = $3,500 * 500 units

    = $1,750,000

    2. Bravo annual sales = 2,500 units

    Bravo contribution per unit = $2,500

    So, Individual dollar contribution = Bravo contribution per unit

    Individual dollar contribution = $2,500

    and, Total annual dollar contribution = Bravo contribution per unit * Bravo annual sales

    = $2,500 * 2,500 units

    = $6,250,000

    3. Charlie annual sales = 4,500 units

    Charlie contribution per unit = $2,000

    So, Individual dollar contribution = Charlie contribution per unit

    Individual dollar contribution = $2,000

    and, Total annual dollar contribution = Charlie contribution per unit * Charlie annual sales

    = $2,000 * 4,500 units

    = $9,000,000
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