Application A. You are the brand manager for your company. Your boss has passed on to you the following information. The date is January 1, 2018. As brand manager, he asks you to use Product Portfolio Analysis to evaluate the following product mix. Your Tax Rate = 40%. Sales 2017 2017 Sales (000s) 2017 $ Investment (000s) Total Total Cash Major Mkt. Share per 1 % Mkt. Item 2016 2017 Assets (000) Flow (000) Depreciation Industry Competitor Target Share Gain 1 80.0 104.0 600.0 (10.0) 40 425.0 125.0 28.0 12.0 2 100.0 112.0 550.0 25.0 20 300.0 55.0 37.0 8.0 3 2.0 10.0 50.0 (2.0) 10 125.0 80.0 50.0 2.0 4 400.0 425.0 1200.0 200.0 80 800.0 125.0 6.0 10.0 5 125.0 127.0 600.0 50.0 25 2200.0 800.0 4.0 5.0

a. Identify and classify each of the products (items) above. (Show all calculations that were necessary to evaluate the product mix. (15 points)

b. Which products would you keep in your portfolio and which products would you drop? (5 points)