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Explain why the break-even point is important and how this calculation can be completed for service-based organizations.
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- What exactly is product-service bundling, and what are the advantages for customers?What is product-service bundling, and what are the benefits to customers?As our new systems analyst, we need your help with some organizational and industry research. First, you need to familiarize yourself with our organization. You should create an organizational chart so you can visualize how we will layout AW's organization with the additional proposed department. Next, you will need to perform an analysis, such as a SWOT diagram, to assess whether this new service specialty will be an appropriate strategy for us long term.
- What are the underlying concepts of system analysis and how do they apply?Brief Exercises 7-11 through 7-14 involve departmental cost allocation with two service departmentsand two production departments. Use the following information for these four exercises:Brief ExercisesPercentage Service Provided toDepartment Cost S1 S2 P1 P2Service 1 (S1) $ 30,000 0% 30% 35% 35%Service 2 (S2) 20,000 20 0 20 60Production 1 (P1) 100,000Production 2 (P2) 150,0007-13 What is the total cost in P1 and P2 and what is the amount of service department cost allocated to P1and P2 using the step method with S1 going first?Brief Exercises 7-11 through 7-14 involve departmental cost allocation with two service departmentsand two production departments. Use the following information for these four exercises:Brief ExercisesPercentage Service Provided toDepartment Cost S1 S2 P1 P2Service 1 (S1) $ 30,000 0% 30% 35% 35%Service 2 (S2) 20,000 20 0 20 60Production 1 (P1) 100,000Production 2 (P2) 150,0007-11 What is the amount of service department cost allocated to P1 and P2 using the direct method?
- Brief Exercises 7-11 through 7-14 involve departmental cost allocation with two service departmentsand two production departments. Use the following information for these four exercises:Brief ExercisesPercentage Service Provided toDepartment Cost S1 S2 P1 P2Service 1 (S1) $ 30,000 0% 30% 35% 35%Service 2 (S2) 20,000 20 0 20 60Production 1 (P1) 100,000Production 2 (P2) 150,0007-12 What is the total cost in P1 and P2 after allocation using the direct method?How would you go about solving this using least-cost method?What do you think about outsourcing service activities? How do you think these can be used to satisfy customer needs and wants? What might be the pros and cons of outsourcing?
- Give an example of a service firm, outside the coffee shop industry, that hasmanaged to compete in an industry with low entry barriers using brand loyalty.Classify how an ERM approach will improve an organization’s acceptance by internal and external stakeholders.What are the considerations involved in making the decision to provide services in-house or to outsource the service? What is ideal?