The management accountant at Iang Manufacturing Co.collected the following data in preparation for a life-cycle analysis on one of its products, a leaf blower: $\begin{array}{cc}
&& & \text { Average } \
&&\text { Change }& \text { Annual } \
&&\text { Over } & \text { Change Over } \
& \text { This }&\text { Last } & \text { the Last } \
\text { Item } & \text { Year }&\text { Four Years }&\text { Year }\\hline
\text { Annual sales } & \$ 2,700,000 & +1.8 \% & +23.5 \% \
\text { Unit sales price } & 450 & +2.4 \% & +8.3 \% \
\text { Unit profit } & 100 & -1.0 \% & +3.0 \% \
\text { Total profit } & 600,000 & -1.2 \% & +30.0 \%
\end{array}$ The stage of the sales life cycle the product is in is:
A)Introduction.
B)Growth.
C)Maturity.
D)Decline.
E)Withdrawal.

Question

The management accountant at Iang Manufacturing Co.collected the following data in preparation for a life-cycle analysis on one of its products, a leaf blower: $\begin{array}{cc}
&& & \text { Average } \
&&\text { Change }& \text { Annual } \
&&\text { Over }  & \text { Change Over } \
& \text { This }&\text { Last } & \text { the Last } \
\text { Item } & \text { Year }&\text { Four Years }&\text { Year }\\hline 
\text { Annual sales } & \$ 2,700,000 & +1.8 \% & +23.5 \% \
\text { Unit sales price } & 450 & +2.4 \% & +8.3 \% \
\text { Unit profit } & 100 & -1.0 \% & +3.0 \% \
\text { Total profit } & 600,000 & -1.2 \% & +30.0 \%
\end{array}$ The stage of the sales life cycle the product is in is:
A)Introduction.
B)Growth.
C)Maturity.
D)Decline.
E)Withdrawal.

Quizplus · Accepted Answer

The product is in the maturity stage of the sales life cycle. This is because sales are still increasing, but at a slower rate than in the growth stage. Unit sales price and unit profit are also increasing, but at a slower rate than in the growth stage. Total profit is increasing, but at a faster rate than in the growth stage. This is all indicative of a product that is in the maturity stage of its life cycle.

The Management Accountant at Iang Manufacturing Co The Stage of the Sales Life Cycle the Product Is