Question
San Terra Computers competed exclusively in the computer industry and generated approximately 98 % of its revenue from the sales of computers and computer -
San Terra Computers competed exclusively in the computer industry and generated approximately 98 % of its revenue from the sales of computers and computer - related software and approximately 2 % of its revenues were generated from sales of other peripherals .
Further , of these revenues , 70 % was from sales in the U.S. , 20 % was from sales in Europe , 7 % was from sales in Asia and 3 % was from other areas . In October 2010 , Terra entered the personal electronics industry by introducing a new MP3 player known as the TerraPit . In developing and selling the TerraPit ,
Terra Computers was able to use many of the same R & D facilities , suppliers , production facilities , and distribution and sales outlets as the computers and software Terra Computers traditionally sold . By 2015 , the TerraPit MP3 Player , accessories for the unit , and sales of songs on Terra Computers ! NectarTunes website accounted for 35 % of Terra Computers ' revenues . In addition , this strategy has enabled the Terra managers to access detailed and accurate information about the actual performance of the businesses as well as spread the risk of Head across several different technological - related goods businesses .
Q.
Which types of economies of scope are Terra Computers experiencing between its units ? Explain and reflect .
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Economies of scope are efficiencies formed by variety not volume the latter concept is economies of scale1 In economics economies is synonymous with c...Get Instant Access to Expert-Tailored Solutions
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