What Advice Would You Give a Company to Avoid the Appearance
What advice would you give a company to avoid the appearance of predatory pricing?
Bicker, Inc., is in the process of evaluating a new product using the following information: Required: a.What are the estimated life-cycle revenues? b.What is the estimated life-cycle operating income if the product life cycle is one year?
Grace Greeting Cards Incorporated is starting a new business venture and are in the process of evaluating its product lines.Information for one new product, traditional parchment grade cards, is as follows: Required: a.What are the estimated life-cycle revenues? b.What is the estimated life-cycle operating income if the product life cycle is one year? c.What is the estimated life-cycle operating income per year for the years after the first year if all of the development costs are charged to the first year? d.What is the total estimated life-cycle operating income?
Ski Vallet provides materials that let people teach themselves how to snow ski.It has six different skill-level programs.Each one includes visual and audio learning aids along with a workbook that can be submitted to the company for grading and evaluation purposes, if the person so desires.The accounting system of Ski Vallet is very traditional in its reporting functions with the calendar year being the company's fiscal year.It does include an abundance of information that can be used for various reporting purposes.The company has found that any new idea soon runs its course with an effective life of about three years.Therefore, the company is always in the development stage of some new program.Program development requires experts in the area to provide the know-how of the item being developed and a development team that puts together the video, audio, and workbook materials.The actual costs of reproducing the packages is relatively cheap when compared to the development costs.Required: How might product-life-cycle reporting aid the company in improving its overall operations?