Slinky: Imitated but never duplicated

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Other manufacturers have tried and failed to duplicate the classic toy, which is why every Slinky sold in the world is still made in the U.S.A. It is estimated that more than 250 million Slinky’s have been sold worldwide.

Questions:

1. In which city are Slinky’s made according to the video?
2. How was the Slinky discovered?
3. What year was the company acquired from Betty James? What was the average seniority of the workforce when acquired? Based on this, would you assume that the company had a low or high unemployment tax rate? What effect does employee turnover have on unemployment taxes for employers?
4. Research the Slinky. (see http://inventors.about.com/od/sstartinventions/a/slinky.htm) Why is it considered such an entrepreneurial success story? Where did the name come from? What was the turning point for the company’s success? What was the original investment in the company? If you were recording the original investment, what journal entry would you make for the James Spring & Wire Company?
5. If you assume that the number sold was an equal amount of the total each year since 1945 and the average price was $3, what is the amount of total revenues over the period and annually?

Sources:

Bellis, M. (2011) History of the Slinky Toy, About.com (Retrievable online at http://inventors.about.com/od/sstartinventions/a/slinky.htm)

CNN staff (2011) Slinky: Imitated but Never Duplicated, CNN Money, Nov. 1 (Retrievable online at http://money.cnn.com/video/smallbusiness/2011/11/01/smb_hwgs_slinky.cnnmoney/)