Question

1. Company A sells paper coffee cups to all Doutor Coffee locations in Japan. Company B sells dinner plates to all Saizeryia restaurants in Japan. Company A charges $1 for a pack of 100 cups and Company B charges $3 for 1 dinner plate. Tell us exactly what information you would need to determine whether Company A or Company B has higher annual revenue and explain how you would calculate these two figures.

2. What is one industry you think will be gone in 15 years? Answer the question using the following guidelines:
   1. Identify at least one company in this industry and explain why their business will not succeed over time
   2. How will consumers of this product/service evolve
   3. How will the competitive landscape evolve and in what time frame
   4. What, if anything, could the industry do to prevent becoming obsolete?

Answer 1

Determination of annual revenue:

1. Information needed to determine whether the Company A and Company B has higher annual revenue include:

(a) the annual quantities of packs of paper coffee cups sold to the Doutor Coffee locations in the japan for a number of years.

(b) the quantities of dinner plates sold to saizeryia restaurants in japan for the same years as above.

2. The annual revenues of can be calculated by multiplying the price for a pack of 100 cups by the annual quantity sold.

Explaination:

Revenue is calculated as price and quantity sold. The price is selling price per unit and the price is depends on the period for which revenue is being computed.

Revenue is the sales of all the goods and services. Gross profit comes as revenue over cost of sales , from which expenses would be dedicated to arrive at net income after adding other incomes from Non-operational activities.