Complete Question:
The management accountant at Jang Manufacturing Co. collected the following data in preparation for a life-cycle analysis on one of its products, a leaf blower: Item This Year Change Over Last Year Average Annual Change Over the Last Four Years Annual sales $3,200,000 -2.4% +3.5% Unit sales price 500 -2.1% +3.3% Unit profit 100 -10.0% +2.0% Total profit 700,000 -1.2% +3.0% The stage of the sales life cycle the product is in is:
Answer:
Jang Manufacturing Co.
The stage of the sales life cycle the product is in is:
The introduction stage.
Step-by-step explanation:
a) Life-Cycle Analysis of the Leaf Blower:
Item This Year Change Average Annual Change
Over Last Year Over the Last Four Years
Annual sales $3,200,000 -2.4% +3.5%
Unit sales price 500 -2.1% +3.3%
Unit profit 100 -10.0% +2.0%
Total profit 700,000 -1.2% +3.0%
b) The sales life cycle is a series of sales steps that the seller takes in order to convert a customer to make a buying decision. It starts with the introduction stage when the seller creates customer awareness. At this stage of the sales life cycle, the product can be likened to a potential STAR. Like Stars with potential, the initial sales efforts can eventually grow to become successful customer closes.