Precision Ww Inc.

CASE BACKGROUND Precision Worldwide, Inc. (PWI) manufactures industrial machines and equipment for sale in many countries. Repair and replacement give aways account for a considerable part of the companys business. The replacement part in question, make peal, occur in the machines manufactured save in PWIs Frankfurt Germany plant, but can alike be used on some contenders machines. The steel march manufactured by PWI has an average practice feel of closely 2 months. Machines require between 2 and 6 sound to operate. Individual rings are replaced as they grind out. Over the years, competition had increased and now a competition company, the French firm Henri Poulenc, has entered the market with a supreme pliant ring that replaces the steel ring. The waxy ring is slight dearly-won to manufacture and has a longer life. Scenario: The PWI sales manager, Gerhard Henk, is request when this yield will be available for him to sell that his competitor already has on th e market, particularly in France where the competitor is the strongest. Bodo Eisenbach, the PWI outgrowth Engineer, estimates the plastic rings can be produced in around 4 months at a tool and equipment cost of approximately $7,500. PWI latestly has about $390,000 worth of special steel in contemporary inventory that cannot be sold, even for scrap. Patrick Corrigan, from the parent company spokesman, expects Thorborg to expunge out all steel supplies. If sales of the steel ring continue until the plastic rings were ready for the market about 15, c rings would remain in stock upon the plastic rings unload date. Information supplied from PWIs cost accounting discussion section: fudge A: 100 Plastic Rings 100 make Rings Material $ 17.65 $ 321.90 Direct Labor $ 65.50 $ 196.50 Overgead * departmental $ 131.00 $ 393.00 Administrative $ 65.50 $ ! 196.50 do (cost) $...If you want to get a entire essay, order it on our website: OrderCustomPaper.com

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