...deliver on the value proposition Product: how can we create value place how can we deliver value promotion: how can we communicate value price: how can we capture value Business Situation: Classic Pen Company is a low-cost producer of Black & Blue Pens in the market Profit margins were over 20% of sales, Market trends reflecting demand for red & purple pens 5 years ago, start manufacturing of red & purple pen Sales of red & purple pens reusult in reducing profits as a whole Production Problem: Complexity of changeovers to new colours (changing blue/black to red/purple) due to Quality concerns and demanding specifications Increased purchasing & scheduling activities Overhead burden increasing from 200% to 300% of direct labour cost Accounting Method: Currently overhead aggregated at plant level & allocated based on direct labour Considering Activity-Based-Costing Income Statement Summary Blue & Black Product Lines now well under 20% margins Higher margin on new products Overall margins lower Need to consider new accounting methods Income Statement Summary Blue & Black Product Lines now well under 20% margins Higher margin on new products Overall margins lower Need to consider new accounting methods Cost % Measure Indirect Labour 20,000 Scheduling Production Runs 10,000 50% Production Runs Color changeover 8,000 40% Setup Time (hours) Maintaining Records 2,000 10% Production Runs Computer Systems...
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...cost producer of blue and black ink pens, decided to expand its product line by introducing red and purple pens into the market. Utilizing the same machinery and technology, the company produced red pens at a three percent premium and purple pens at a ten percent premium. The transition to the increased production requirements have not been fluid and the profitability of the company is not at the level management previously envisioned. The controller reviewed the most recent financial reports for Classic Pen Company and is disappointed with the results. Prior to production of the red and purple pens, total indirect costs were less than direct labor costs. All indirect costs were accumulated at the factory level and assigned to products based on direct labor costs. Prior to the introduction of the red and purple pens, the overhead rate was two hundred percent of direct labor costs. After the production of the red and purple pens, the overhead rate was three hundred percent of direct labor costs. The profit margin of Classic Pen Company decreased from twenty percent to 13.5 percent. The cost system used by Classic Pen Company has historically allocated overhead costs on the basis of direct labor costs. The current financial data has led the controller to question the current overhead cost structure. Their current costing system reports identical overhead percentages for the black, blue, red and purple pens regardless of production volume. The manufacturing manager at...
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...and Scott Black Collection (MFA information plaque). The painting depicts a small purple sailboat with a green and red sail in the sea underneath an enormous, majorly, pink cloud in the light blue sky with two other red sailboats and purple steam boats. The enormous pink cloud and the light blue sky is reflected into the sea and the purple sailboat has a dark reflection in the sea as well. The sailboat is in the center of the painting while the cloud is above and behind the sailboat. The other sailboats are to the right and behind the main sailboat and the steam boats are all the way to the right in the far distance. The time of day in the work, which can be determined from the color of the cloud and sky, appears to be sunset and the sun is off canvas at the top left corner. The viewer is meant to be looking at this view of the boats and massive cloud from land and to be peering at the landscape from the very edge of the water due to no land being shown. The primary focus of the painting is the sailboat that is located within the foreground of the painting. The focus divides the painting nearly symmetrically, the sky and the lake are almost even and the boat is right in the center to keep the painting balanced. The sailboat also in a way creates a dark arrow that makes the eye go to the pink cloud. The painting contains primary colors (blue, red, and yellow). There are many hues of purple for darker clouds, pink for the cloud, light greens for the sea and sail, various...
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...Baliarsingh MIB -118083 ANALYSIS Classic Pen Company’s Return on Sales decreased significantly after it expanded its product line to include red and purple pens. Two alternatives exist: 1) Stop making red and purple pens 2) Increase the price of red and purple pens Prior to adding red and purple pens to its lineup, Classic Pen’s Return on Sales was approximately 22%. However, producing the new colors has caused many time consuming changeovers, increasing production costs and decreasing the Profit Margin. Comprehensive Return on Sales has fallen from 22% to 13.5% (Exhibit 1). Blue and black pens are still generating a 21.6% and 22.6% return, while red and purple pens are operating at a loss, reducing both Net Income and Return on Sales. Classic Pen Company could easily restore its Profit Margin to 22% if it stopped making red and purple pens. Currently, red and purple pens are causing Classic Pen Company to lose money. If the company wants to continue to produce red and purple pens, it should increase the selling price of these colors, so the Return on Sales is equal to, if not greater than, that of the blue and black pens. However, Classic Pen Company should not continue to produce these additional colors at a loss, decreasing its Net Income and comprehensive Return on Sales. Classic Pen Company should immediately cease production on red and purple pens. It should continue to produce blue and black pens, but should not introduce any new colors to its lineup until it has...
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...Atomic Spectra Prediction Neon will have the most spectral lines because it has high intensity of light present and because it has a full outer valence. Observe Element | # of spectra lines and colours | Missing | Hydrogen | Violet(1), red(1), blue(1) | Yellow, green, orange, purple | Neon | Yellow(1), orange (2), green(2), red(3) | Purple, blue | Mercury | Purple (1), green(1), orange (1) | Yellow, red, blue | Helium | Blue(2), green(2), orange(1), red(1) | Yellow, purple | Nitrogen | ROYGBIV (all colours) | | Nitrogen had the most spectra lines. The electromagnetic spectrum consists of all the different wavelengths of electromagnetic radiation, including light, radio waves, and X-rays. The Bohr-model would help us to determine which had the most spectra lines and colours because the colour of the lights is related to the lights energy. Light is absorbed when electrons jump down or up from one energy level to another, adding energy to an electron will cause it to get excited and move out to a higher energy level-the more energy that you add to the atom, the farther the electron will go. Bohr Rutherford’s experiments from that past have stated that electrons would be able to absorb and later release energy through colours of light. When this energy that comes out of the atoms falls towards the nucleus it releases energy in the process, this energy that falls towards the nucleus appears as light. Permitted energy levels are unique to all elements...
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...Corporate Growth Objectives Royal Purple is a name that is synonymous with performance, having hundreds of products serving all things that need lubricated it should be in every household. While that goal is a little over the top we need to press to have the Royal Purple family of products in every high performance car, and in every consumer vehicle possible. The first step in this is what kind of growth we need to achieve in order to ensure that Royal Purple once again becomes a regonized necessity within the racing community. Currently you have a market saturation rate of 35% or the racing market and 4% of the average commuter market. The goal for this campaign is going to be an increase of 100% resulting in a 70% saturation in the racing community and a 8% saturation in the commuter market. This goal is very achievable and will be push for from day one through every viable means available. This will also give the business an opportunity to increase revenue giving way to a few more options as far as marketing the product and making it available to all. I expect to see a 50% increase in revenue at the completion of this campaign due to the suffering nature of the brand as it sits today. This increase will allow for more aggressive forms of advertising as well as bringing in more experts to the workforce. Analysis of the Promotional Program Situation Currently Royal Purple employs many different forms of promotion and has done well with these. I feel that a...
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...I. Introduction The problem of this case is that, as in the financial report for the most fiscal recent year, the overall profitability of Classic Pen company goes down despite of the introducing of its new two products, RED and PURPLE pens, which show more profitable than the traditional BLUE and BLACK product. These two new products are expected to be sold at premium selling prices about 3% and 10% respectively in the order and the new line, particularly PURPLE, in fact, showed much higher margin over the others. The problem was addressed is that the production technology required for the RED and the PURPLE pens demand specifications. Especially, making the RED color needs more changeovers, which leads to waste lots of time on purchasing and scheduling and management activities as well as money. In order to come up with a management decision under this situation, the controller is considering of using the activity-based costing (ACB) system to create the financial statement instead of using the traditional, job order costing system. Unlike the job order costing which maintains records and allocate cost on top of direct labor, ABC focuses on activities. Therefore, it leads more cost pools to be used to assign overhead costs to products. Four cost drivers which directly related to activity cost pools to assign overhead costs could be used for this case. As a result, costs are assigned more directly on the basis of the cost drivers used to produce each product. II. Strengths...
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...the trees that are painted dark purple appear to have more painterly aspects than the rest of the composition. From far away, the painting seems smooth and sleek, but up close, the individual thick brushstrokes can be seen. The implied texture of the leaves in the painting is sturdy and prickly, and the texture of the yellowed grass appears to be dry and coarse, however, the actual texture of the painting itself is smooth. The artist also uses both curvilinear and geometric lines. In looking at the trees in the painting, they are composed of primarily geometric lines (excluding the leafy top) that run in a vertical direction. The curvilinear lines appear on the road, as the road dividers have a curvy edge. The composition contains warm colors, such as yellow, orange, (which are primary colors) and orange-red (a tertiary color.) It also includes cool colors, such as green, blue and purple, which are all secondary colors. Secondary colors are the result of mixing the primary colors together. Some of the colors are analogous on the color wheel, which means they belong on the same side. These colors include the orange and yellow hues, and the green and blue hues. Many of the colors are complimentary as well. Complimentary colors are colors on the opposite side of the color wheel in relation to each other. The baby blue of the sky compliments the offset orange of the hills. The pale yellow of the outer hills compliments the shadows that appear purple in the picture. The artist also...
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...to offer for sale at different price levels at a given point in time. An increase in supply can be impacted by a range of factors. One of these factors is advantages in technology. If the technology that a firm uses develops, they will be able to make more of the good and therefore the supply will increase. An example of this is iPhones, their technology is constantly improving and therefore their supply will also increase. Another factor is having a good season. For example, if a firm produced mango and the weather was good, the firm would get a good crop and their supply would increase. In figure 2, you can see an increase in supply. The green line shows the original supply curve, and the blue dot (P1) shows the original equilibrium. When the supply of the product increases, the supply curves moves to the right which is the purple line. Because the supply curve has moved, there is a new equilibrium at P2. The change in the supply curve will...
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...Some people may state that the artist formally known as Prince Rogers Nelson only produced overly provocative music. And that there is nothing to learn from the music he creates. Why should his music matter in the first place? What significance can it hold? However, Prince’s album Purple Rain has continued to change the life of individuals since its release on June 25th of 1984. Through credible sources such as: Rolling Stone and Larry King Live (on December 10th of 1999) I will be able to analyze Prince’s interpretations of his own music ,and explain how three of his songs from the Purple Rain album teach us to live through life more wisely. The three songs will consist of “Baby I’m A Star”, “Let’s Go Crazy”, and “The Beautiful Ones” because...
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...customer needs. Furthermore this company mayor steady income came from local boutiques and retailers. As a growing company Kalix want to expand for that reason company designers came with a new product they expect to launch in and outside of the United States. Kalix have an exclusive line of products called Purple Drop, Purple Drop swim wear is a local line with great acceptance in the island. Purple Drop also have they star product call “Sleek Koture” and because of the remarkable local sales and demand of this product, Kalix want to try it out of the united state. * “Sleek Koture” is what women commonly known as body Shapers but with a twist. “Body shapers are made out of strong materials (typically a mixture of nylon and lycra) that are able to force the body into shape and instantly make anyone seem inches thinner. All companies claim that their body shapers are comfortable, and they truthfully are more comfortable than the corset of the past” (Essorment, 2012). * We called it shaper with a twist because most of the competition has marketing a similar product as lingerie. The prints are boring or too simple, even though you can look great wearing them as a garment. The twist in Purple Drop “Sleek Koture” is they do them in fashionable prints, ready to wear outfits, Swim and sport wear. Kalix new product will offer costumer flexibility movement comfort and security. *...
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...You can use StatCrunch to assist with the calculations. A link for StatCrunch can be found under Tools for Success in Course Home. Here is also a link: http://statcrunch.pearsoncmg.com/statcrunch/larson_les4e/dataset/index.html. You can also find additional help on both confidence intervals and StatCrunch in the Online Math Workshop under Tab: “MAT300 Archived Workshops”. Specifically you will be looking for Hypothesis Tests and Using Technology – Hypothesis Testing. Submit your answers in Excel, Word or pdf format. Submit your file through the M&M® project link in the weekly course content. Be sure to state clear hypotheses, test statistic values, critical value or p-value, decision (reject/fail to reject), and conclusion in English (what does reject/fail to reject the null mean in terms of your hypotheses). When doing calculations for the color proportions, keep at least 4-6 decimal places sample proportions, otherwise you will encounter large rounding errors. Masterfoods USA states that their color blends were selected by conducting consumer preference tests, which indicated the assortment of colors that pleased the greatest number of people and created the most attractive overall effect. On average, they claim the following percentages of colors for M&Ms® milk chocolate candies: 24% blue, 20% orange, 16% green, 14% yellow, 13% red and 13% brown. 3 pts. Test their claim that the true proportion of blue M&Ms® candies is 0.24 at the 0.05 significance level...
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...Plate B was incubated 25 C and had a cell morphology of beige, cloudy thick lines and some cloudy thick dots. This eliminated the possibilities S. marcescens, B. subtilis, S. lutea, S. epidermidis, M. roseus, M. roseus, and C. sporogenes. S. marcescens colonies are red; M. roseus colonies are orange; S. lutea and M. luteus colonies are yellow; B. subtilis, C. sporogenes, and S. epidermidis colonies appear in white.2 This narrowed the possibilities to A. faecalis, P. fragi, and E. coli. All three species colonies appear to have the beige/ whitish color with both lines and dots. However, A. faecalis had the best similarity to plate B with beige, cloudy, thick lines and dots. Next in the process was making the nutrient agar slants, smears, and then staining....
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...MAT 300 M&Ms® Project Part 4 (21 pts) Use the M&Ms® data to complete this assignment. You will be using the methods of 7.4 for the color proportions and 7.2 for the mean number of candies per bag. For the Bonus you will be using the methods of 7.5. You can use StatCrunch to assist with the calculations. A link for StatCrunch can be found under Tools for Success in Course Home. Here is also a link: http://statcrunch.pearsoncmg.com/statcrunch/larson_les4e/dataset/index.html. You can also find additional help on both confidence intervals and StatCrunch in the Online Math Workshop under Tab: “MAT300 Archived Workshops”. Specifically you will be looking for Hypothesis Tests and Using Technology – Hypothesis Testing. Submit your answers in Excel, Word or pdf format. Submit your file through the M&M® project link in the weekly course content. Be sure to state clear hypotheses, test statistic values, critical value or p-value, decision (reject/fail to reject), and conclusion in English (what does reject/fail to reject the null mean in terms of your hypotheses). When doing calculations for the color proportions, keep at least 4-6 decimal places sample proportions, otherwise you will encounter large rounding errors. Masterfoods USA states that their color blends were selected by conducting consumer preference tests, which indicated the assortment of colors that pleased the greatest number of people and created the most attractive overall effect. On average, they...
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...traditional BLUE and BLACK pens. Profit margins were over 20% of sales. Five years earlier, RED pens had been introduced and were sold at 3% premium. Last year, PURPLE pens were sold at 10% premium. RED and PURPLE pens seem more profitable than BLUE and BLACK but overall profitability is down. Jane Mendez was disappointed with the financial results. Jeffrey Donald, the manufacturing manager, said life was simpler when they just produced BLUE and BLACK pens. Difficulties started arising when they started RED pens. They needed to stop production, empty the vats, clean out all remnants of the previous color and start production of red ink. Direct labor cost is 300%, while a few years back it was only 200%. Activity-Based Costing: * Indirect labor * 50% of the indirect labor costs are caused by Production run * 40% of the indirect labor cost were caused by the physical change from one color to another called setup costs * 10% of the time was used to an activity Parts Administration (Book keeping) * Computer Expenses * 20% allocated to support activities (Parts admin.) * 80% of computer resources were used to produce batches and are closely related to handling of production batches ACA No. 3. Eliminate RED and PURPLE pens in the production and go back to the original product line. (use traditional costing only) PROS: * No drastic changes needed since they are used to it * Less time needed in product turnover since dark –...
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