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Lecturer Company Analysis Company analysis aims at analyzing the financial and inventory position of the company during the tradingperiod. The analysis is based on the two product categories provided by the company; Tops and Tone. The cost of goods sold for Tone and Tops is $25,845,000 and $8,987,000 respectively. This illustrates that Tone generated a higher level of sales revenue, hence, has high demand.
The contribution in terms of revenue of the two brands reduced after marketing campaigns. The contribution before marketing was $11,281,000 and $3,618 for Tone and Tops respectively. Likewise, the contributions after marketing declined to $8,689,000 and $1,006,000. The reduction is due to increases marketing expenses.
Tone controls more market share than Tops. This explains the relatively high sales revenues generated by Tone. The brand controls 22.6% of the market, and Tops controls a lower proportion of 8.1%. Tone achieved higher sales volume. This is due to effective advertisement campaigns, and shows the high market share. The specialty stores illustrated the most effective sales approach, due to the high units sold at 69,000. Tops managed to sell only 39,000 units through the stores.
Tone illustrated fewer inventories at the end of the trading period. This is due to high demand and sales level of the product. The inventory unit is 7. This is lower compared to the inventory of Tops at 51. The inventory holing cost for Tone is much lower; thus illustrating higher profit margins.
Tone has higher brand price than Tops. The average selling price of Tone is $330, while that of Tops is $248. Customers buy more quantities of Tone, despite the high selling price, due to the effective ability of the product to achieve customer needs. In the trading period, company TROPHY illustrated adequate profit before taxes, at $9,429,000.