What is the total product purchased by adriana

Assignment Help Managerial Accounting
Reference no: EM13950207

Adriana Alvarado has decided to purchase a personal computer. She has narrowed the choices to two: Drantex and Confiar. Both brands have the same processing speed, 6.4 gigabytes of hard-disk capacity, a 3.5-inch disk drive, and a CD-ROM drive, and each comes with the same basic software support package. Both come from mail-order companies with good reputations. The selling price for each is iden- tical. After some review, Adriana discovers that the cost of operating and maintain- ing Drantex over a three-year period is estimated to be $300. For Confiar, the operat- ing and maintenance cost is $600. The sales agent for Drantex emphasized the lower operating and maintenance costs. The agent for Confiar, however, emphasized the service reputation of the product and the faster delivery time. (Confiar can be pur- chased and delivered one week sooner than Drantex.) Based on all the available information, Adriana has decided to buy Confiar.

Required

1. What is the total product purchased by Adriana?

2. How does the strategic positioning differ for the two companies?

3. When asked why she decided to buy Confiar, Adriana responded, "I think that Confiar offers more value than Drantex." What are the possible sources of this greater value? What implications does this have for the management accounting information system?

4. Suppose that Adriana's decision was prompted mostly by the desire to receive the computer quickly. Informed that it was losing sales because of the longer time to produce and deliver its products, the management of the company producing Drantex decided to improve delivery performance by improving its internal processes. These improvements decreased the number of defective units and the time required to produce its product. Consequently, delivery time and costs both decreased, and the company was able to lower its prices on Drantex. Explain how these actions translate into strengthening the competitive position of the Drantex PC relative to the Confiar PC. Also discuss the implications for the management accounting information system.

Reference no: EM13950207

Compute the operating profit for each market segment

BUACC2613- Management Accounting 1. Use the activity-based costing information to allocate the $301080 of "other operating costs" to each of the market segments. Compute the

Which of the following best describes vertical analysis

Which of the following best describes vertical analysis? Two capital budget projects are being considered at Alpha Co.  Both projects are acceptable choices, but they have di

Prepare an advisory report for the management

Following the AIB Assignment Format, prepare an advisory report for the management that includes a theoretical background to the three investment decision criteria you have

Calculating net present value

In calculating net present value, what are the factors that determine the right discount rate to use?discuss the factors that determine the appropriate discount rate to use wh

Compare drug revolving fund operations among nigeria states

Compare Drug Revolving Fund operations among Nigeria States then narrow down to Kaduna state, which you then compare with other countries like Sudan, kenya, ethiopia and Ruw

Briefly trace the development and growth of the organisation

Briefly trace the development and growth of the organisation from its beginnings to the present through the application of corporate strategies - what types of strategies ha

What is the effect on pretax earnings

If the error is not corrected in the current year and is discovered by the auditors during the following year's audit, how will the error be reported in the company's financia

How the unitarist and pluralist approaches to conflict

Describe how the Unitarist and Pluralist approaches to conflict would explain the positions of (a) management and (b) unions in the Schweppes dispute. Identify which one of

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd