In the 1990’s, Enterprise Rent-A-Car was a highly-profitable and fast-growing market leader concerned with protecting their position in the market. Based on the information presented in the case and based on our lecture discussion, would you conclude that Enterprise was operating in a Red Ocean or Blue Ocean environment? Please be sure to frame your answer in the context of the Red Ocean / Blue Ocean model discussed in class.

Solomon chemical company makes three products, b7, k6, and x9, which are joint products from the same materials. in a standard batch of 320,000 pounds of raw materials, the company generates 70,000 pounds of b7, 150,000 pounds of k6, and 100,000 pounds of x9. a standard batch costs $3,840,000 to produce. the sales prices per pound are $10, $14, and $20 for b7, k6, and x9, respectively. (a) allocate the joint product cost among the three final products using weight as the allocation base. (b) allocate the joint product cost among the three final products using market value as the allocation base. (c) allocate the joint product cost among the three final products using weight as the allocation base.