Question: ULO Case Analysis 2: Unit 5 Titanium Business Operations (Production) Titanium clothing sells uniforms for superheroes. Titanium's strategy is to offe of clothing options, excellent
ULO Case Analysis 2: Unit 5 Titanium Business Operations (Production) Titanium clothing sells uniforms for superheroes. Titanium's strategy is to offe of clothing options, excellent customer service, and a premium price. Titanium following data for 2015 and 2016. For simplicity, assume that each customer ( purchases one piece of clothing. Pieces of clothing purchased and sold Average selling price Average cost per piece of clothing Selling and customer service capacity 2015 40,000 $60 $40 51,000 customers $357,000 $7 cus $2 Selling and customer service costs Selling and customer-service capacity cost per customer (line 5 / line 4) Purchase and administrative capacity Purchase and administrative costs Purchasing and administrative capacity cost per distinct design (line 8 / line 7) 980 designs $245.000 $250 per design 850 de $20 $24 de Total selling and customer-service costs depend on the number of customers that T created capacity to support, not the actual number of customers that Titanium serv purchasing and administrative costs depend on purchasing and administrative capac Titanium has created (defined in terms of the number of distinct clothing designs tha can purchase and administer), Purchasing and administrative costs do not depend or number of distinct clothing designs purchased. Titanium purchased 930 distinct desig and 820 distinct designs in 2016, At the start of 2016, Titanium planned to increase operating income by 10% over ope
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