The growth-share matrix defines four types of SBUs:
- Stars: Consolidate/ Expand
- Question Mark: Improve/Invest or Divest
- Cash Cow: Harvest
- Dog: Divest
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What is the growth-share matrix?</h3>
The reasoning behind the growth share matrix is that market leadership yields greater profits that are sustainable. In the end, the market leader achieves a cost advantage that is difficult for rivals to match. The markets with the highest development potential are then indicated by these high growth rates.
Each of the four quadrants reflects a particular ratio of growth and market share relative to other quadrants:
- High Share, Low Growth. Businesses should harvest the cash from these "cash cows" to reinvest.
- High Growth, High Share. Because of their tremendous future potential, businesses should heavily invest in these "stars."
- Low Share, High Growth. Depending on their prospects of becoming stars, businesses should either invest in or ignore these "question marks."
- Low Growth, Low Share. These "pets" should be liquidated, divested, or repositioned by businesses.
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I guess the correct answer is Longitudinal study
After their marriage, Patrick and Mary Anne agreed to participate in a research project that investigated differences in the level of marital satisfaction over time. Every five years they had to complete a survey that indicated their marital satisfaction. Patrick and Mary Anne are participants in a Longitudinal study.
Answer:
A. $86,900
Explanation:
Henry’s capital account will be credited by the amount of $86,900. See computation below.
Cash $57,300
Equipment 34,100
Inventory 10,400
Note payable (14,900)
————
Total $86,900
*Both the equipment and the inventory will be recorded on partnership’s book at fair market value at the time of contribution.
*The partnership may absorb the obligation if it is associated with an asset contributed by partner. Thus, it will be deducted to his capital account as contribution to the partnership.
Answer:
(1) rejected (2) $7500
Explanation:
Here is the complete question
Harrison Ford Company has been approached by a new customer with an offer to purchase 10,000 units of its model IJ4 at a price of $5 each. The new customer is geographically separated from the company's other customers, and existing sales would not be affected. Harrison normally produces 75,000 units of IJ4 per year but only plans to produce and sell 60,000 in the coming year. The normal sales price is $12 per unit. Unit cost information for the normal level of activity is as follows: Fixed overhead will not be affected by whether or not the special order is accepted.
Direct Materials $1.75
Direct Labor 2.50
Variable Overhead 1.50
Fixed Overhead 3.25
Total $9.00
1. What are the relevant costs and benefits of the two alternatives (accept or reject the special order)?
2. By how much will operating income increase or decrease if the order is accepted? by $____??
Answer
(1)
Relevant Benefits = 10000 x 5 = $50000
Production Costs = Total Unit x (Direct Material + Direct Labor + Variable Overhead) = 10000 x (1.75 + 2.50 + 1.50) = $57500
given that the production cost are higher than the benefit, I think the special order should be rejected
(2)
Net Operating Income if the Order is Accepted = Relevant Benefits - Relevant Costs = 50000 - 57500 = -$7500
Operating Income will decrease by $7500
