MN 1015 workshop 5

MN 1015 workshop 5 - -Mercedes is up-market Cash flow of...

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MN 1015 Workshop 5 Value added= sales- purchases Cost recovery / Cost reduction Reduction in sales price= cost recovery How is this related to the product life cycle? Volvo vs. Mercedes Up- market Reasons for Mercedes spending less money in labour than Volvo: - Sweden (Volvo) has higher minimum wages
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Unformatted text preview: -Mercedes is up-market Cash flow of Volvo in the beginning of the 90s was negative which led to reducing labour costs. Profit before tax + depreciation = cash flow As a result of less sales Volvo reduces labour costs by firing people...
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