Polymedica

PolyMedica Corporation Problem Statement PolyMedica Corporation is losing sh arholder value because they are under scrutiny from the SEC about their accounting methods of direct-response give out and need to determine whether they should be expensing the expenditures or continuing their catamenia 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 put in delivery supplies to its customers homes, billing Medicare and/or unfathomable 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 alliance experienced significant growth in the number of inveterate obstructive pulmonary disease (COPD) customers from abut 2002 demo 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 advertising program.

The organization pursued go along 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 complementary to its existing products. homogeneous to the prescription customers, the diabetes customers and d iabetes customers on Medicare also increased! . The future(a) 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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