Marketing & Financial Analysis

Four year marketplace projections predict a General Electric marketplace share of 6.595 million merchandise units by 1981 (a four year marketplace growth of 43.1 percent more than twice the pro jected growth in total marketplace size, which will give the company a item unit marketplace share of 26.3 percent, compared to a merchandise unit industry share of 22.1 percent in 1977, a solution unit market share increase of 19.0 percent more than the four year period). The 6.595 million merchandise units are expected to get a market significance in 1981 of $35.527 million (a four year market value growth of 44.3 percent over twice the projected industry value growth to your total market, which will give the business a marketplace significance share of 24.2 percent, compared to a market importance share of 20.3 percent in 1977, a industry value share enhance of 19.2 percent over the four year period). Thus, by 1981, the General Electric marketplace importance share is expected to become greater than the company's item unit marketplace share, which methods that, in 1981, the average price of General Electric clock and timer items is expected being higher than the average unit cost for ones total market a complete reversal of positions inside problems prevailing in 1977.

Profit margins for your company's clock and timer pro ducts operations are presented in Table 1, which might be observed on the following page. As the data presented in Table One Table 1tion totals equal company solution unit totals.

Production prices for clock and timer products and solutions are higher inside the United States than they would be if the solutions have been produced in Singapore. The comparable production price struc tures in your representative product or service a virtual electromechanical alarm clock are presented in Table 2, which may be discovered over a right after page. As the details presented in Table 2 indicate, critical reduction inside levels of costs allocated to the production of digital electromechanical alarm clocks could possibly be achieved, if the company have been to transfer production of the goods to Singapore in the United States. The total cost saving would amount to $1.16 per unit, or 20.0 percent per product or service unit. The most effective cost savings arrive during the fixed cost area, exactly where $0.76 per merchandise unit, or 24.7 percent, per product or service unit is saved. Variable cost savings would be $0.40, or 14.7 percent, per merchandise unit. Inside the fixed cost cate gory, approximately a couple of thirds ($0.50 per merchandise unit) of the savings would result from factory overhead differentials, with the remaining savings ($0.26 per product or service unit) resulting from corporate overhead differentials. Factory overhead would be 38.5 percent lower in Singapore, even though corporate overhead.

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