The Financials For Clipboard Company

1740 Words7 Pages
Introduction The financials for Clipboard Company since 2011 indicate the financial progress for use when addressing factors that can cause the company to continue making profits or to fail. Currently, the company offers three technological devices specifically tablets under the names X5, X6, and X7. The three products have been in the market for different times as they were developed and introduced into the market at various times. X7 is the youngest product and apparently retails at the least price. However, it has not picked as expected in the market. The primary company 's objective is to maximize revenues by varying the prices of its commodities and undertaking research and development. However, the most beneficial strategy on the…show more content…
However, at 2015, the product will have reached shakeout stage, and it will have increasingly declining new customers. When the price is lowered to $420, and R&D for the product lowered to 25% then, the tablet will perform better than its competitors in the market. At this time, the total sales will be 1, 371, 992 in 2012, and 2, 316, 675 in 2013. However, according to SLP 3 that would mean that the company would have to reduce the production volume to achieve default run profitability. On the other hand, if the company increases the cost of X6 tablet to $450 and R&D to 40% it would mean that the customers pay the same for the tablet as they pay for other competing tablets in the market. In that case, it would call for a decision on the side of the customer based on their loyalty for them to purchase the tablet. In so doing, the organization will register a sale volume of $1, 854, 036 in 2014 and $2, 337, 247 in 2015. If the company will increase the price further to $470 and increase R&D to 45%, then tablet X6 will be less expensive for customers to buy than competing tablets. With that change, the company will make sales of 2, 337, 247 in 2014 and 1, 180 751 in 2015. The reason for the decline will be because the product will have reached the shakeout stage where the number of new customers will progressively decline (Calvin, 2002). Following the analysis above, the best strategy for tablet X6 is to increase the price to $450 and R&D to 40% for between 2012 and
Open Document