Assignment 3

Issue 1.

Describe a current product (good or service) you believe has entered the Decline Stage of the Product Life Cycle. What factors caused it to go into decline? Can you think of any change in the 4Ps that might allow the life of the product to be extended?

Issue 2.

Of all the promotional tools we looked at, which one is the most effective in getting your attention and interesting you in a product? Conversely, which of the tools is something that has a slim to zero chance of reaching you, much less interesting you?

Issue 3.

Keeping the Fundamental Accounting Equation in mind (Assets = Liabilities + Equity), categorize the items below into the proper category to create a simple balance sheet. Please provide the balance sheet in its entirety, not just the answer to the equation. Do NOT paste a picture of a file... write the balance sheet out. Do not use a template created elsewhere. If you use an electronic spreadsheet, include the spreadsheet file in the word file used for the rest of this assignment.

Equipment	250000
Accounts Payable	50000
Cash	25000
Loans Payable	225000
Buildings	400000
Retained Earnings	830000
Land	125000
Accounts Receivable	150000
Inventory	155000

Issue 4.

Surfer Bobby has decided to sell custom surfboards. He was able to rent a workshop/garage in an industrial park for $3,000 a month, which includes all utilities, and he already owns the equipment and tools he needs. He anticipates being able to sell his boards for $800 each. The raw materials (foam, fiberglass, etc.) will cost an average of $200 for each board, and he plans to spend $100 sales commission per board to the surf shops who have agreed to sell them to the public.

Assuming these are all the costs and revenues, what will be Bobbys monthly break-even point in units? Does this seem like a reasonable amount for him to produce and sell every month? Please show your calculations. Again, do NOT paste a picture of a solution... write the answer out yourself.