Answered: Given the following data from a recent…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Transcribed Image Text:Given the following data from a recent Comparative Competitive Efforts page in the CIR: Industry Average $250 Your Company vs. Ind. Avg. Your AC CAMERA SEGMENT Price (Average Wholesale Price $ per unit) P/Q Rating (1 to 10 stars) Brand Reputation Company $235 5.0 -6.0% 5.1 -2.0% 71 75 -5.3% Number of Models 3 3.1 -3.2% Retail Outlets Multi-Store Chains 26 35 -25.7% Online Retailers 51 68 -25.0% 2,150 5.86 2,897 6.92 Local Retailers -25.8% Retailer Support ($ per unit) Advertising Budget ($000s) Website Displays ($000s) Weeks -15.3% 1,000 800 1,929 1,764 -48.2% -54.6% Sales Promotions 2 4.7 -57.4% Discount 12.0% 15.9% -24.5% Warranty Period (days) Demand for ACC Units (000s) Gained /Lost (due to stockouts) AC Camera Units Sold (000s) Market Share 60 69 -13.0% 255.8 279.0 -8.4% +1.3 257.1 -0.1 278.9 -7.8% 13.2% 14.3% -1.1 pts Special AC Camera Contracts Discount Offer Value Index Avg. Discount =12.4% Avg. Value Index = 71 Total Units = 58.5k 0.0% Special Contract Units Sold (000) Based on the above data for your company, which of the following statements is false? Copyright © by Glo-Bus Software, Inc. Copying, distributing, or 3rd party website posting isexpressly prohibited and constitutes copyright violation. Your company had a net overall competitive disadvantage of a size sufficient to produce a market share that was 1.1 percentage points below the industry average. Your company gained sales of 1,300 AC Cameras due to stockouts by one or more rival companies. Your company's competitive disadvantages in the AC camera segment would have greatly boosted your company's Value Index and made your camera brand highly attractive to chain retailers had your company's management team elected to compete for special contracts. Your company's price-based competitive advantage helped offset some of the negative impacts associated with your company's nine competitive disadvantages. O Your company had relatively small competitive disadvantages on three competitive factors -brand reputation, number of models, and P/Q rating.

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