Prepare a product-by-value analysis for the following products, and given the po

Question

Prepare a product-by-value analysis for the following products, and given the position in its life cycle, identify the issues likely to confront the operations manager, and his or her possible actions. Product Alpha has annual sales of 1,000 units and a contribution of $1,500 per unit; it is in the introductory stage. Product Bravo has annual sales of 1,250 units and a contribution of $2,500 per unit, it is in the growth stage. Product Charlie has annual sales of 3,000 units and a contribution of $2,000 per unit, it is in the decline stage. Product-by-value analysis Product Bravo Charlie Alpha Individual dollar contribution Total annual dollar contribution

Explanation / Answer

Total annual dollar contribution = Individual dollar contribution * Annual sales  

Product by value analysis Product Individual dollar contribution Total annual dollar contribution Bravo $2,500 $3,125,000 Charlie $2,000 $6,000,000 Alpha $1,500 $1,500,000

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