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Unformatted text preview: Jeremy Doncouse Ex 11-1 1) The total product purchased by Jason is 1) the cost of the computer, 2) the cost of the repairs and maintenance, 3) the sales ability of the sales representatives, and 4) the promise of superior service from an outside source. 2) Brand A is pursuing a cost leadership strategy by indicating that operating costs are lower than any other brand. Brand B is pursuing a differentiation strategy because even though their costs are higher, they offer superior service. 3) The sources of the greater value lie in the customer's perception that service on a computer is more highly valued than operating costs. For Brand A I would say give up a little bit of operating' savings and concentrate on service. Maybe, they can find a happy medium where they don't have neither the best operating costs or the best service, but can provide an overall better value in the eye's of the customer. Ex 11-5 Name: Jeremy Doncouse Enter the appropriate numbers in the shaded cells in columns D, F, K, and M. 1) Activity Cost / Units Activity Rate Inspection component $1,200,000 / 1,000 = $1,200 per inspected order Expediting work $960,000 / 100 = $9,600 per expedited order Reworking products $6,844,500 / 1,500 = $4,563 per rework hour Warranty work...
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This note was uploaded on 03/08/2011 for the course ACCT 360 taught by Professor N/a during the Fall '10 term at Mountain State.
- Fall '10