Axiom Company blends and sells designer fragrances. It has a Men's Fragrances Division and a Women's Fragrances Division, each withdifferent sales strategies, distribution channels, and product offerings. Axiom is now considering the sale of a bundled product called Sync,consisting of one bottle of Him, a men's cologne, and one bottle of Her, a women's perfume, two of Axiom's very successful products. Axiom sellsequal quantities of Him and Her perfume. For the most recent year, Axiom reported the following:(Click the icon to view the sales information.)Data tableProductHimHerSync (Him and Her)Retail Price$ 40.00$60.0090.00X Requirement 1d. Allocate revenue from the sale of each unit of Sync to Him and Her using the Shapley value method, assuming equal unit salesof Him and Her. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.)HimI would recommend theHerShapleyRequirement 2. Of the four methods in requirement 1, which one would you recommend for allocating Sync's revenues to Him and Her? Explain.It is fairer than thein a manner that is close to the costs allocated under theallocation problem by consideringwhichIt allocates costsbut takes a more comprehensive view of the common cost

Variable costs are costs that varies with the change in the level of output whereas fixed costs are…

Axiom Company blends and sells designer fragrances. It has a Men's Fragrances Division and a Women's Fragrances Division, each with different sales strategies, distribution channels, and product offerings. Axiom is now considering the sale of a bundled product called Sync, consisting of one bottle of Him, a men's cologne, and one bottle of Her, a women's perfume, two of Axiom's very successful products. Axiom sells equal quantities of Him and Her perfume. For the most recent year, Axiom reported the following: (Click the icon to view the sales information.)

Axiom Company blends and sells designer fragrances. It has a Men's Fragrances Division and a Women's Fragrances Division, each with different sales strategies, distribution channels, and product offerings. Axiom is now considering the sale of a bundled product called Sync, consisting of one bottle of Him, a men's cologne, and one bottle of Her, a women's perfume, two of Axiom's very successful products. Axiom sells equal quantities of Him and Her perfume. For the most recent year, Axiom reported the following: (Click the icon to view the sales information.)

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter13: Nonlinear Optimization Models

Section: Chapter Questions

Problem 5P: Jims Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demand for these two...

See similar textbooks

Similar questions

Spirit Company blends and sells designer fragrances. It has a Men's Fragrances Division and a Women's Fragrances Division, each with different sales strategies, distribution channels, and product offerings. Spirit is now considering the sale of a bundled product called Sync, consisting of one bottle of Him, a men's cologne, and one bottle of Her, a women's perfume, two of Spirit's very successful products. Spirit sells equal quantities of Him and Her perfume. For the most recent year, Spirit reported the following: (Click the icon to view the sales information.) Read the requirements. Data table $ 80.00 LE $ Sync (Him and Her) $ 130.00 Product Him Her Retail Price 120.00
Best Buy Ltd is planning to launch a wide range of personal computers to serve the market for many types of users. The main objective to launch the product is to maximize the company's profit. So, the top management assigned the strategic marketing team to find out the followings: 1) List the various segmentation variables the company can use to segment their market. 2) Briefly explain why you have selected each one (Target market). 3) Which segments could the company aim for (Positioning the customer)?
Hardy Limited has undertaken research into launching a new product which will take it into a new market area. Hardy feels it has expanded its existing operation to its maximum potential, and it is the market leader in its existing field. The proposed new product would offer new opportunities and, although there is strong competition in its field already, the management feel it can use its existing brand name to break into this product line. The new product is in car cleaning accessories, but will offer items in a single package not currently available. The management believe that,although the proposed product may be relatively short lived, the penetration of new markets is worthwhile as long as the product does not make a loss. Details of the project are as follows: • Market research costs incurred to date amount to £250,000 • Investment in plant at the start: £2,900,000. At the end of the product's life the plant will have a disposal value of £80,000 . The project is estimated to have…
Revenue allocation, bundled products. Couture Corp sells Samsung 7 cases. It has a Men’s Division and a Women’s Division. Couture is now considering the sale of a bundled product called Dynamic Duo consisting of Smarty, a men’s case, and Sublime, a women’s case. For the most recent year, Couture sold equal quantities of Smarty and Sublime and reported the following:
Hurney Corporation manufactures plastic water bottles. It plans to grow by producing high-quality water bottles at a low cost that are delivered in a timely manner. There are a number of other manufacturers who produce similar water bottles. Hurney believes that continuously improving its manufacturing processes and having satisfied employees are critical to implementing its strategy. Required: Is Hurney's strategy one of product differentiation or cost leadership? Explain briefly. Identify at least one key element that you would expect to see included in the balanced scorecard a. for the financial perspective. b. for the customer perspective. c. for the internal business process perspective. d. for the learning and growth perspective.
The Alfredo Fragrance Company produces only one product, a perfume called Hint of Elegance. Hint of Elegance consists of two secret ingredients blended into an exclusive fragrance, which is marketed in Zurich. An economic expression referred to as the Cobb-Douglas function describes the production of Hint of Elegance as follows: Where X is the amount of perfume produced. The company operates at a level where ingredient 1 is set daily at 25 units and ingredient 2 at 36 units. Although the price Alfredo pays for ingredient 1 is fixed at $50 per unit, the cost of ingredient 2 and the selling price for the final perfume are both probabilistic. The sales price for Hint of Elegance follows this distribution: SALES PRICE ($) PROBABILITY 300 0.2 350 0.5 400 0.3 The cost for ingredient 2 is Ingredient 2 Cost ($) Probability 35 0.1 40 0.6 45 0.3 (a) What is the profit equation for Alfredo Fragrance Company?
Lamothe Kitchen and Bath makes products for the home, which it sells through major retailers and remodeling (do-it-yourself, or DIY) outlets. One product that has had varying success is a ceiling fan for the kitchen. The fan comes in three sizes (36-Inch, 44-Inch, and 54-Inch), which are designed for various kitchen sizes and cooling requirements. The chief financial officer (CFO) at Lamothe has been looking at the segmented income statement for the fan and is concerned about the results for the 36-inch model. Revenues Variable costs Fixed costs allocated to products Operating profit (loss) 36 Inch $ 376,000 233,600 149, 230 $ (6,830) 44 Inch $ 578,600 287,680 227,464 $ 63,456 54 Inch $ 356,400 165,500 140, 806 $ 50,094 If the 36-Inch model is dropped, the revenue associated with it would be lost and the related variable costs saved. In addition, the company's total fixed costs would be reduced by 25 percent. Required: a. Prepare a differential cost schedule to support your…
Lamothe Kitchen and Bath makes products for the home, which it sells through major retailers and remodeling (do-it-yourself, or DIY) outlets. One product that has had varying success is a ceiling fan for the kitchen. The fan comes in three sizes (36-Inch, 44-Inch, and 54-Inch), which are designed for various kitchen sizes and cooling requirements. The chief financial officer (CFO) at Lamothe has been looking at the segmented income statement for the fan and is concerned about the results for the 36-inch model. Revenues Variable costs Fixed costs allocated to products Operating profit (loss) 36 Inch $ 372,200 231,600 147,230 $ (6,630) If the 36-Inch model is dropped, the revenue associated with it would be lost and the related variable costs saved. In addition, the company's total fixed costs would be reduced by 25 percent. Required A Required B Required: a. Prepare a differential cost schedule to support your recommendation. b. Should Lamothe Kitchen and Bath should drop the 36-Inch…
Suppose Gaurab Chakrabarti and Sean Hunt’s company, Solugen, makes peroxide-based cleaners in different strengths. The founders must decide on the best sales mix. Assume the company has a capacity of 400 hours of processing time available each month and it makes two types of cleaners,Deluxe and Premium. Information on these products follows.
You are the Division A controller for Company A Baked Goods Company. Company A recently introduced a new chocolate chip muffin brand called Plenti-O-Chips, which has more than twice as many chips as any other brand on the market. The brand has quickly become a huge market success, largely because of the number of chips in each muffin. As a result of the brand's success, the product manager who launched the Plenti-O-Chips brand has been promoted to division vice president. A new product manager, Ellen, has been brought in to replace the promoted manager. At Company A, product managers are evaluated on both the sales and profit margin of the products they manage. During her first week on the job, Ellen notices that the Plenti-O-Chips muffin uses a lot of chips, which increases the cost of the muffin. To improve the product's profitability, Ellen plans to reduce the amount of chips per muffin by 10%. She believes that a 10% reduction in chips will not adversely affect sales, but will…
Lizzy's is a retail clothing store, specializing in formal wear for weddings. They purchase their clothing for resale from specialty distributors and manufacturers. Recently the owners of Lizzy have noticed an increased interest in costume jewelry and fashion accessories among their clientele. If the owners decide to expand their business to include these products, what cost data would they need to collect and analyze prior to expanding their business?
Three companies that compete in the athletic and activewear market segment are Nike, Inc. (NKE),lululemon athletica inc. (LULU), and Under Armour, Inc. (UAA). Nike is the largest designer and seller of athletic footwear and apparel in the world. Lululemon designs and sells technical athletic apparel featuring yoga, Fitness, and dance-inspired wear. Under Armour designs and sells athletic apparel featuring high-performance fabrics for men and women around the world. Selected financial information for a recent year follows (in millions): a. - How does the size of these companies, as represented by total revenues, compare to each other?b. Compute the days' cash on hand for all three companies. Round all calculations to one decimal place. c. Comment on the cash sufficiency for these three companies. d. Which company appears to have the greatest cash liquidity?e. Why is a ratio used to compare cash sufficiency across the three companies rather than just the companies' cash balances?