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Ksenya-84 [330]
3 years ago
8

How would you array the following organizations in terms of the depth and breadth of their product lines?

Business
1 answer:
Evgen [1.6K]3 years ago
5 0

Answer:

a. The depth of a solo practice family practitioner is narrow whereas its breadth can be wide.

b. They have wide depth and breadth.

c. It has narrow depth and breadth.

d. They have narrow depth and narrow breadth.

Explanation:

Depth means number of variants of each product. Breadth means variety of different products offered.

A solo practice family practitioner has limited its practice and decided not to deliver babies. It has narrow breadth whereas depth is high as it can offer counselling service, immediate help to the patient, family planning guidance and so on.

Multi specialty group has wide depth and breadth as it offers group practice at different locations.

An academic medical center will have narrow depth and breadth as there is only medical studies available to the students and they do not have variety of subjects to choose from.

Shouldice Hospital has narrow depth and breadth as it offers only short stay surgeries. They include hernia repair and appendix. Patients with majors surgeries are not welcomed here.

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1 year ago
Aloha Bags, Inc. produces student book bags that sell for $20 each. For the coming year, management expects fixed costs to be $2
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Solution :

a). At the break even units, the total contribution margin = fixed expenses

  We know that : (Selling price - variable cost) x units sold = fixed expenses  

    i.e.  (20-14)x = 225,000

                  6x   = 225,000

                    x = 37,500

Therefore, the number of units sold, x = 37,500

So, the break even analysis = 37,500 x 20

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b). $\text{Contribution margin ratio} = \frac{\text{(Sales - variable cost) }}{\text{sales}}$

                                              $=\frac{20-14}{20}$

                                             = 30%

    The Breakeven sales = $\frac{\text{fixed cost}}{\text{Contribution margin ratio}}$

                                         $=\frac{225,000}{30\%}$

                                         = 750,000

c). $\text{Margin of Safety ratio } = \frac{\text{(Sales - Breakeven sales)  }}{\text{sales}}$

                                        $=\frac{1,2000,000-750,000}{1,200,000}$

                                        = 37.5%

d). Units needed :

   $(20-14)x - 225,000 = 150,000$

    $6x - 225,000 = 150,000$

    $6x = 375000$

     x=62,500  units

Therefore, the sales required = 62,500 x 20

                                                 = 125,000  

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Answer:

$17,883,320

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