A Consumer Electronics Company, After Three Months of the Launch

question 45

Essay

A consumer electronics company, after three months of the launch of 5 new products in the market, arrived at the following results:

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 both its market share and cost and that can increase the profit.

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Definitions:

Raw Materials

The basic, unprocessed or partially processed materials used to produce goods and finished products in manufacturing.

Work in Process Inventory

Goods partially completed in manufacturing but not yet ready for sale, reported as a current asset.

Manufacturing Overhead Applied

The allocation of manufacturing overhead costs to units of product based on a predetermined rate or base.

Overhead Applied

The allocation of indirect costs to produced goods or services based on predetermined rates.