CASE BACKGROUND Precision Worldwide, Inc. (PWI) manufactures industrial machines and equipment for sale in both(prenominal) countries. Repair and replacement split account for a long part of the companys business. The replacement part in question, puff peal, occur in the machines manufactured only in PWIs Frankfurt Germany plant, exactly can also be used on some contenders machines. The brace ring manufactured by PWI has an average normal relish of close to 2 months. Machines adopt between 2 and 6 go to operate. Individual go are replaced as they romance out(p). Over the years, competition had increase and now a contest company, the French firm Henri Poulenc, has entered the grocery store with a superior teachable ring that replaces the nerve ring. The waxen ring is less dearly-won to manufacture and has a long-run life. Scenario: The PWI gross sales manager, Gerhard Henk, is asking when this defer will be useable for him to sell that his competitor al fix has on the market, particularly in France where the competitor is the strongest. Bodo Eisenbach, the PWI development Engineer, estimates the pliable rings can be produced in about 4 months at a scape and equipment cost of about $7,500. PWI latestly has about $390,000 worth of special steel in current size up that cannot be sold, even for scrap. Patrick Corrigan, from the refer company spokesman, expects Thorborg to cancel out all steel supplies.
If sales of the steel ring go along until the plastic rings were ready for the market about 15,100 rings would remain in argument upon the plastic rings clear date. Information supplied from PWIs cost accounting department: beleaguer A: 100 plastic Rings 100 make Rings Material $ 17.65 $ 321.90 Direct take $ 65.50 $ 196.50 Overgead * Departmental $ 131.00 $ 393.00 Administrative $ 65.50 $ 196.50 do (cost) $...If you want to get a full essay, order it on our website:
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