You have been approached by a potential customer who could bring considerable business. She says, “I’d like to find an alternative vendor for my future orders of 5,000/yr., but their pricing to me must be competitive.”
Your CFO has supplied you with the following information. Current product standard costs are as follows:
The board of directors requests a quick but thorough presentation to determine whether taking on this potential customer is a good idea. Assume that your factory is fully operational and that you will not have any learning curve impacts. Answer the board’s following questions based on data from the CFO:
THIS ASSIGNMENT MUST BE PRESENTED IN 8-10 CONTENT SLIDES WITH SPEAKER NOTES SHOWING ALL CALCULATIONS
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