Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Al-Masa Computer Company has two product lines, Brand Foster and Brand Energy. Overall, the company profit has been declining in the last six months. According

image text in transcribed
Al-Masa Computer Company has two product lines, Brand Foster and Brand Energy. Overall, the company profit has been declining in the last six months. According to the controller, computer Foster costs $ 500 and is a high-volume product with sales over 1000. Competitors producer similar computer with an average market price of $ 600 that has cut into Al-Masa company's sales volume for Brand Foster. On the other hand, the company makes a large profit margin from sales of computer Energy because it costs only $ 400 to produce and the selling price is $ 750. The marketing vice president suggests shifting the sales mix in favor of computer Energy, which is more complicated to make, and still few of them are available on the market. Required: 1. As a managerial accountant, graduated from An Najah MBA program, what would you advise the executive manager of the Al-Masa company? Would you recommend to focus on brand Foster, or is it better to focus on the brand Energy as suggested by the marketing vice president? Provide analysis for you answer. 2. What do you suggest on Al-Masa Company to enhance its competitive position

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Clinical Audit In Primary Care Demonstrating Quality And Outcomes

Authors: Ruth Chambers, Gill Wakley

1st Edition

1857757092, 978-1857757095

More Books

Students also viewed these Accounting questions