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Clear Hear Revenue, Cost Concepts 1 Clear Hear Revenue, Cost Concepts, and Market Structure Proposal Carl R. Foster October 5, 2010 ECO 561 University of Phoenix
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Clear Hear Revenue, Cost Concepts 2 Clear Hear Revenue, Cost Concepts, and Market Structure Proposal Clear Hear, a manufacturer of cell phones, is always looking to increase its revenue, maximize its production operation while adhering to its corporate core values. The core values are to keep customers satisfied, maintain employee satisfaction (working) while maintaining production schedules and deliveries, reliability that meets or exceed expectations, and treat business partners the same as Clear Hear wants to be treated. The organization in order to maximize profitability, should evaluate how variable and fixed costs should be adjusted. The company needs to analyze, evaluate, and identify alternatives. They need to complete a risk assessment to identify probable threats and negative aspects of these alternatives. Finally, Clear Hear needs to recommend the best alternatives and articulate how the alternatives meet their goals. It is clear that the organization’s values can meet customers’ expectation with the highest ethics and professionalism while maximizing the firm’s resources to earn healthy profits. The paper presents an opportunity for Clear Hear to increase its revenue but not without challenges to its sales margins and production operations because of the introduction a new unit selling price, and continues with providing the process used to make recommendation including supportive economic concepts and assumptions made. Opportunities and Challenges Clear Hear has the opportunity to secure a 100,000 piece order of a product similar to its Alpha model. Currently, Clear Hear manufactures two different cell phones; Alpha model and Beta model. Clear Hear’s business development specialist, Kendra Sherman, has locked in an order from a major chain store, Big Box, which is running a telephone service provider promotion. Big Box is not willing to pay more than $15 per unit; currently Clear Hear selling
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This note was uploaded on 07/29/2011 for the course MKT 421 taught by Professor Unknown during the Spring '08 term at University of Phoenix.

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