Binney & Smith's Crayola Makes Various Products,all Targeted Toward Elementary

question 35

Essay

Binney & Smith's Crayola makes various products,all targeted toward elementary schoolchildren.Drawing,painting,and supply items are sold at convenience stores,toy stores,and grocery stores.Clothing is sold in department stores.Crayola might arrange its product items in the following way:

What is the product mix width for Crayola? What is its product line depth?

---

Definitions:

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts, making for a simple depreciation calculation.

Proposed Investment

A prospective asset or capital outlay under consideration for its potential to generate income or appreciate in value.

Simple Rate Of Return

A calculation that measures the percentage return on an investment or project, not accounting for the complexity of interest compounding.

Cash Operating Expenses

Expenses that a company pays out in cash during an operational period, including salaries, utilities, and rent, but excluding non-cash expenses like depreciation.