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A Consumer Electronics Company, After Three Months of the Launch

question 65

Essay

A consumer electronics company, after three months of the launch of five new products in the market, arrived at the following results.  Products  Profit (%)  Market share (%)  Cost ($)  A 19184500 B 28123000 C 15258750 D 22356250 E 16102500\begin{array} { l | c | c | c } \text { Products } & \text { Profit (\%) } & \text { Market share (\%) } & \text { Cost (\$) } \\\hline \text { A } & 19 & 18 & 4500 \\\text { B } & 28 & 12 & 3000 \\\text { C } & 15 & 25 & 8750 \\\text { D } & 22 & 35 & 6250 \\\text { E } & 16 & 10 & 2500\end{array}
a. Create a bubble chart where the market share is along the horizontal axis, the profit is on the vertical axis, and the size of the bubbles represents the cost. Format this chart for best presentation by adding axes labels and labelling each bubble with the product name.
b. The manager of the company is interested in producing the product that increases the profit for a given level of market share and cost. From the bubble chart in part a, identify the product which needs to be produced in larger quantity.
c. From the bubble chart in part (a), now identify the product which needs to be produced in larger quantity taking into account its market share, cost, increase in profit.

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Definitions:

T-Accounts

A graphical representation of a ledger account, used in accounting to show the effects of transactions on individual accounts.

Work In Process

Partially finished goods that are still in the production process, representing a component of inventory costs on the balance sheet.

T-Accounts

A visual representation of accounts in the general ledger of a company, used to understand the effects of transactions on each account.

Machine-Hours

A measure of the amount of time machines are used in the production process, often used as a basis for allocating manufacturing overhead costs.

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