ACC 349 Week 4
BYP 6-2 (BYP6-2) Technology Plus manufactures private-label small
electronic products, such as alarm clocks, calculators, kitchen timers,
stopwatches, and automatic pencil sharpeners. Some of the products are
sold as sets, and others are sold individually. Products are studied as
to their sales potential, and then cost estimates are made. The
Engineering Department develops production plans, and then production
begins. The company has generally had very successful product
introductions. Only two products introduced by the company have been
discontinued.
AND SO ON
Instructions
(a) What is the difference in profit under each of the alternatives if the clocks are to be sold for $14.50 each to Kmart?
(b) What are the most important nonfinancial factors that Technology Plus should consider when making this decision?
(c) What do you think Technology Plus should do in regard to the Kmart
order? What should it do in regard to continuing to manufacture the
multi-alarm alarm clocks?
Click here for the solution: ACC 349 Week 4 Technology Plus manufactures private-label small electronic products, such as alarm clocks, calculators, kitchen timers, stopwatches, and automatic pencil sharpeners
