Polymedica

PolyMedica Corporation Problem Statement PolyMedica Corporation is losing sh arholder value because they argon under scrutiny from the SEC about their accounting methods of direct-response predict and need to determine whether they should be expensing the expenditures or continuing their menstruum practice of capitalizing the expenditure as an asset. Analysis PolyMedica Corporation was a ahead(p) provider of direct-to-consumer medical products, (Hawkins & Cohen, 2007). The gild met the needs of customers suffering from diabetes by providing mail localise delivery supplies to its customers homes, billing Medicare and/or confidential insurance directly for those supplies that were reimbursable, providing 24-hour telephone support to customers, and using in advance(p) software and advanced order fulfillment systems to provide products. The corporation experienced significant growth in the number of inveterate obstructive pulmonary disease (COPD) customers from abut 2002 evidence 2003; by servicing the customers in a similar manner to the diabetic customers. The organization gained 17,000 new active COPD prescription customers. The organization invested $64,061,000 from April 1, 2002 to March 31, 2003 in a direct-response publicizing program.

The organization pursued encumber growth in its direct-to-consumer businesses by expanding its customer base and as well as considered expanding it further by purchasing businesses that provided products to consumers that were completing to its existing products. homogeneous to the prescription customers, the diabetes customer s and diabetes customers on Medicare also in! creased. The undermentioned chart shows the various types of customers that PolyMedica Corp was focusing on acquiring. The $64,061,000 advertising campaign helped the company go from 17,000 customers in 1996 to an astonishing 545,000 customers in 2003. PolyMedica Corp 31-Mar-0231-Mar-03Increase from 02 to 03 Diabetes Customers440,000545,000105,000 COPD...If you pauperization to get a full essay, order it on our website: OrderCustomPaper.com

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