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Top managers of Advanced Data Manufacturing are alarmed by their operating losses.They are considering dropping the desktop product line.The company accountants have prepared the following analysis to help make this decision.
If the company stops selling the desktop product line,the company will be able to avoid 80% of the fixed manufacturing costs and 100% of the fixed selling and administrative costs.
Prepare a differential analysis to show whether Advanced Data Manufacturing should drop the desktop product line.Should the desktop product line be dropped? Explain your answer.
Positioning Strategy
A marketing strategy that aims to establish a brand or product in a certain position within the minds of target consumers relative to competitors.
Points of Difference
Unique features or benefits of a product or service that set it apart from competitors in the eyes of consumers.
Competition Analysis
The process of identifying competitors and evaluating their strategies to determine their strengths and weaknesses relative to those of your own product or service.
Price Strategy
A plan or approach used by businesses to set and adjust prices of their products or services to maximize profitability and meet market demands.
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