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| Topic: |
Business
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| Number of pages / Number of words: |
9 / 2428 |
Essay's paper body
This is because their selling and administrative expenses have gone up proportionally to past years and also because their cost of revenue (which includes direct materials, direct labor, and overhead) has gone up as well.
Looking at Appendix B, you can see that their current revenues are 516.69M more than the industry average...
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This looks good until you look at their cost of revenue. In 2004, Callaway's cost of revenue went up 46.47% while their revenue only went up 14.8%. The cost of manufacturing their new products and the R&D expenses of creating them seem to be outweighing the return they receive from them. Callaway also lost market share in their drivers and woods (Quotes and Info, n...
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General points of the essay
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