3. The Company has unlimited resources. What product should the company's marketing department be emphasizing? 4 Assume that Ralph has enough resources to manufacture the 2 products above, but nothing else. He can contract with Disney World to produce the Caricature product line for a purchase price of $175 per unit (Ralph would pay Disney for the paintings but then Ralph would sell to the final customer). Ralph would produce another line of art with the resources Beach Scenes Ralph is hoping the Beach Scene line would sell well on the West Coast of Florida. He expects to sell 250 paintings of the beach scene for a contribution margin of $75 per picture. Ralph would allocate $40 in rent to the new product line Should Ralph outsource the Caricature product line and produce the Beach Scenes? 5. What are some non-quantitative factors that should be considered by the company to develop a product mix strategy? Ralph's Artistic Artwork manufactures two different products lines, Impressionistic and Caricature. The following per unit data apply: Impressionism Caricature Selling price $160 S200 Cost of frame @ $5 per square foot $10 $15 Other direct materials $50 $20 Direct labor @ $20 per hour $30 Variable overhead @ $10 per picture $20 Allocated Rent $40 S40 Market Demand (units) 100 200 $30 $10 Number of units produced Impressionism Caricature Scenario 1 Scenario 2 Contribution margin Scenario 1 Scenario 2 Order of Marketing Effort Scenario 3 (order) Scenario 4 (outsource) Which product should Ralph produce and what is net benefit cost? Other Factors that should be considered: Constrained Resource: Outsource: You must link your inputs (from input tab) to your other spreadsheets. You must link your outputs from the calculation worksheets to your summary worksheet SHOW ALL YOUR CALCULATIONS and organize your excel sheets logically. Assume that Ralph has enough resources to manufacture the 2 products above, but nothing else. He can contract with Disney World to produce the Caricature product line for a purchase price of $175 per unit (Ralph would pay Disney for the paintings but then Ralph would sell to the final customer Ralph would produce another line of art with the resources - Beach Scenes. Ralph is hoping the Beach Scene line would sell well on the West Coast of Florida. He expects to sell 250 paintings of the beach scene for a contribution margin of $75 per picture. Ralph would allocate $40 in rent to the new product line. Should Ralph outsource the Caricature product line and produce the Beach Scenes? 5. What are some non-quantitative factors that should be considered by the company to develop a product mix strategy? 3. The Company has unlimited resources. What product should the company's marketing department be emphasizing? 4 Assume that Ralph has enough resources to manufacture the 2 products above, but nothing else. He can contract with Disney World to produce the Caricature product line for a purchase price of $175 per unit (Ralph would pay Disney for the paintings but then Ralph would sell to the final customer). Ralph would produce another line of art with the resources Beach Scenes Ralph is hoping the Beach Scene line would sell well on the West Coast of Florida. He expects to sell 250 paintings of the beach scene for a contribution margin of $75 per picture. Ralph would allocate $40 in rent to the new product line Should Ralph outsource the Caricature product line and produce the Beach Scenes? 5. What are some non-quantitative factors that should be considered by the company to develop a product mix strategy? Ralph's Artistic Artwork manufactures two different products lines, Impressionistic and Caricature. The following per unit data apply: Impressionism Caricature Selling price $160 S200 Cost of frame @ $5 per square foot $10 $15 Other direct materials $50 $20 Direct labor @ $20 per hour $30 Variable overhead @ $10 per picture $20 Allocated Rent $40 S40 Market Demand (units) 100 200 $30 $10 Number of units produced Impressionism Caricature Scenario 1 Scenario 2 Contribution margin Scenario 1 Scenario 2 Order of Marketing Effort Scenario 3 (order) Scenario 4 (outsource) Which product should Ralph produce and what is net benefit cost? Other Factors that should be considered: Constrained Resource: Outsource: You must link your inputs (from input tab) to your other spreadsheets. You must link your outputs from the calculation worksheets to your summary worksheet SHOW ALL YOUR CALCULATIONS and organize your excel sheets logically. Assume that Ralph has enough resources to manufacture the 2 products above, but nothing else. He can contract with Disney World to produce the Caricature product line for a purchase price of $175 per unit (Ralph would pay Disney for the paintings but then Ralph would sell to the final customer Ralph would produce another line of art with the resources - Beach Scenes. Ralph is hoping the Beach Scene line would sell well on the West Coast of Florida. He expects to sell 250 paintings of the beach scene for a contribution margin of $75 per picture. Ralph would allocate $40 in rent to the new product line. Should Ralph outsource the Caricature product line and produce the Beach Scenes? 5. What are some non-quantitative factors that should be considered by the company to develop a product mix strategy
