Slp5 599 Coursework Example | Topics and Well Written Essays - 1250 words - 1

Slp5 599 - Coursework Example The new and final cumulative profit based on the recent decisions is 1,693,539,768 in comparison to the previous profit, which were 1,544,929,139. Therefore, this substantial change in the sum of profits revealed that incorporation of new decisions has allowed better results in comparison to previously decisions undertaken. Nevertheless, it is important to reveal that the new decisions pedestals upon the CVP analysis and data generated and presented in the market report. Hence, indicating that CVP analysis has been of great help in fetching larger profits. It can be noted from the above grid that the Research and Development expenditure on the tablet model X5 has been cut down to 0% throughout four year period from 2012 to 2015. The reduction in R&D is justified on the basis of the model losing its appeal in the market which was considered unlikely to create any new sales for this model. Moreover, it is also indicates that the price of the same model is maintained at the same level of $275 per unit in these years. Furthermore, during 2012-2015 the expenditure on research and development of X6 has been set at 60% in comparison to previous decisions for the model, which were 34% and 40%. The greater acceptance level of this model amongst customers and greater margins are bases for the decision to increase the R&D expenditure on this model. This would allow the model to maintain its position and offer better technology to customers. The price of X6 was increased in 2012 to $450 from $430; however, during the next three years 2013-2015 th e price was reduced to $440. In addition, the research and development expenditure has increased on X7 from 33% to 40% during 2012 and this increment on X7 was maintained till 2015. This was done to give this model a good platform for greater consumer acceptability and purchase of the model in its yearly years.