MN 1015 workshop 5

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

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: -Mercedes is up-market Cash flow of Volvo in the beginning of the 90’s 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...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online