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Variable manufacturing costs per unit Variable nonmanufacturing costs per unit Fixed manufacturing costs per unit

| ▪ A 33% increase in personnel cost as well as the cost of another physicians.▪It cannot be break-even(see Exhibit 1 and 2)

The company’s decision to defer revenues came at a time of significant growth in revenues—suggesting that the company’s decision to defer revenues was partially to dampen or “smooth” the company’s revenue growth. The company’s decision to defer revenue had the effect of reducing reported revenue growth from 88% to 64% in the first quarter of 1996 and increasing revenue growth from 4% to 15% in the first quarter of 1997. Even as reported the first quarter of 1997 represented the lowest quarterly revenue growth in the company’s history. While the timing of the company’s decision to defer revenues appears particularly opportune, the introduction of Windows 95 to the market provides a legitimate reason for the decision. As described in the case, the company expected to integrate its Internet technologies into both Windows 95 and Office 97 “at no additional cost to customers.” Arguably, then, sales of these products were improved by these

I would put Porsche Winter Equipment sale promotion advertisement on three different newspapers for a 12-week campaign so that to make more people watching Porsche advertisement every week. Then, 24,000 direct mails will be sent to the current Porsche owners. As drivers usually have a habit of listening to the radio, I plan to choose 14 rotators to play Porsche’s advertisement. Because the mid-high income people are the Porsche’s target users, who would have the habit of reading magazines, such as luxury car, real estate, tourism, the economist and business management, I decide to put Porsche’s advertisement on five different magazines. In addition, outdoor wallboard and online advertisement would be effective to attract more potential buyer. Therefore, the total advertisement fee is $379,940; and I think this marketing plan and strategy is acceptable and reasonable.

Excess/ obsolescence costs (including cost of inventory adjustments, end-of-life write-offs, scrap, material obsolescence and obsolete product rebate programs)

The local newspaper is a source of advertising that should be used for advertising training programmes, as 9000 copies of the newspaper is printed weekly and distributed in a radius of 200km to all the surrounding

Magazines and Journal advertisements. This is the most expensive. A black and white ad for 6 months, once a month will cost the organization $4,035 for half page national journal and $4,795 full page ad for local magazine.

The ad sales representatives “sale” this magazine by making appointments and meeting with clients. This company has great statistics including online statistics, number of magazines printed, and third part business. This company also has editorial integrity. There are no promises on coverage because advertising representatives have to be persistent and understand the messages and purpose of the magazine. They market this magazine by building connections with clients, getting involved in the community and nonprofits, and using their overall mission to inform, inspire, and

Koala Tech, Ltd., produces office equipment for small businesses and home offices. Some months ago they started selling PFS 1000’s, which are a multi-function color printer, color scanner, color copier, and fax machine all in one. The PFS 1000’s originally received praise on its functionality, price, and innovative design. These accolades combined with Koala Tech’s reputation quickly led to a high demand for PFS 1000’s, which also created a backlog (Meredith & Shafer, 2013). Nevertheless, Koala Tech’s plant has been unable to meet this demand. So, Koala Tech’s president, Nancy Samuelson, is concerned about the backlog and has applied pressure on the plant manager to increase production. Conversely, the president has suddenly shifted gears since

A purchased computer had workers build the computers causing a rise in price for labor. When buying a prebuilt computer, you also can be throwing away money on features that are not needed for your purpose.

Gross Revenue –May’s consolidated gross revenue was $10.1M compared to a budget of $10.3M, a negative budget variance of ($200k). YTD revenue was $105.6M compared to a budget of $110M, a ($4.4M) under budget variance. The hospital had gross revenue that was ($173k) under budget for the month and ($3.5M) under budget YTD. Over budget revenue occurred in Med Surg $178k, Rehab $60k, Oncology $59k, and Cardiology $51k. Under budget revenue occurred in OR ($150k), Radiology ($132k), Hospitalist ($111k) and Ambulance ($66k). Year to date, over budget departments, included Oncology $326k, Pharmacy $262k and Rehab $204k. Under budget departments include Ambulance ($938k), OR ($866k) and Radiology ($840k) on a year to date basis. The Medical

Opportunity costs are a critical part of discounted cash flow analysis, the capital investment analysis, and it’s considered a tried-and-true economic principle. It is referred to as an alternative benefit a business could have received, but decided against due to an equal or better course of action. An example of where the economic concept of opportunity costs could be used in the analysis of a healthcare organization is if a large hospital were to receive a $100 donation. This hospital would like to improve the satisfaction of their employees and patients, hence the hospital decides to either add a colorful mural to a part of the hospital or some speakers for soothing, slow music. Each would cost the same but one of these options may attract

Trade promotions and cooperative advertising are part of a push strategy. Trade promotion is directed towards retailers and takes the form of catalogs, trade magazine advertisements, booklets for consumers, and displays. Using gallery stores will attract and serve their target customers, the 40- to 59-year-old homeowner with an annual household income over $100,000. Also, 78% of the survey respondents state that displaying furniture in individual room settings is somewhat important to very important. Half of the $225,000 deducted from cooperative advertising will be added to the trade promotions fund. Also, an amount of $12,000 is added to the trade promotions fund to assist their salespeople servicing the 50 new accounts. The trade promotions fund will have a total of $591,500. Cooperative advertising is usually spent on newspaper advertising in a retailer’s city. The reduced funds of cooperative advertising for BatesManor will diminish the amount of newspaper advertisements.

As stated in the case, promotion expenditures were categorized into four groups. The first group was the sales expense and administration totaling $995,500 which included salaries for sales personnel, sales managers, and clerical assistance. The second group was the cooperative advertising allowance totaling the most at $1,650,000 and included newspaper, television, and radio advertising in a retailer’s city. The third group was trade advertising totaling $467,000 which takes the form of catalogs, trade magazine advertisements, booklets for consumers, and point of purchase materials such as displays. Lastly, consumer advertising totaled at $562,500 and included shelter magazines such as Better Homes and Gardens and featured new furniture and different bedroom, living room, and dining room arrangements.

Circuit Board Fabricators, Inc. is a small manufacturer of circuit boards located in California. (Chase, Jacobs, and Aquilano, 2004) Large computer companies such as Apple and Hewlett-Packard hire Circuit Board Fabricators to "make boards for prototypes of new products." (Chase, et al., 2004) The case study suggests that Circuit Board Fabricators has a good business plan established within the organization. CBF has implemented a largely automated process using industry standard codes to produce the four circuit boards that have been developed to be able to give quick and high quality service.