Prepare a product-by-value analysis for the following products, and given the position in its life cycle, identify the issues likely to confront the operations manager, and his or her possible actions. Product Alpha has annual sales of 500 units and a contribution of $ 3 comma 500 per unit; it is in the introductory stage. Product Bravo has annual sales of 2 comma 500 units and a contribution of $ 2 comma 500 per unit; it is in the growth stage. Product Charlie has annual sales of 4 comma 500 units and a contribution of $ 2 comma 000 per unit; it is in the decline stage. Product-by-value analysis Product Individual dollar contribution Total annual dollar contribution Alpha $ nothing $ nothing Bravo $ nothing $ nothing Charlie $ nothing $ nothing

Product Individual Dollar contribution Total annual dollar contribution

Alpha $3,500 $1,750,000

Bravo $2500 $6,250,000

Charlie $2000 $9,000,000

Explanation:

According to the scenario, the given data are as follows:

1. Alpha annual sales = 500 units

Alpha contribution per unit = $3,500

So, Individual dollar contribution = Alpha contribution per unit

Individual dollar contribution = $3,500

and, Total annual dollar contribution = Alpha contribution per unit * Alpha annual sales

= $3,500 * 500 units

= $1,750,000

2. Bravo annual sales = 2,500 units

Bravo contribution per unit = $2,500

So, Individual dollar contribution = Bravo contribution per unit

Individual dollar contribution = $2,500

and, Total annual dollar contribution = Bravo contribution per unit * Bravo annual sales

= $2,500 * 2,500 units

= $6,250,000

3. Charlie annual sales = 4,500 units

Charlie contribution per unit = $2,000

So, Individual dollar contribution = Charlie contribution per unit

Individual dollar contribution = $2,000

and, Total annual dollar contribution = Charlie contribution per unit * Charlie annual sales

= $2,000 * 4,500 units

= $9,000,000