market-based management

16.1 Market Demand and Market Share

• Lower market demand from $4000 to $3800 and market share from 25 percent to 22.6 percent and evaluate how sales, profits and financial performance changes.

16.2 Percent Margin and Marketing Expenses

• Lower the revenue per customer to $1,480 and market share to 26 percent. Then return revenue per customer to $1,500, increase marketing expenses from 17 percent to 18 percent. Which change has the greatest impact on performance?

16.3 Asset Management and Invested Capital

• Increase assets from $1,500 to $1,550 and evaluate the impact on financial performance. Then return assets to $1,500, decrease the long-term debt from $500 to $400, and evaluate the effects of this change on financial performance.