Classic pen company case solution pdf. Classic Pen Case webapi.bu.edu 2022-10-28

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It is not clear what specific case or company you are referring to when you mention a "classic pen company." However, I can provide some general guidance on how to approach a case study analysis and provide a solution for a company in the pen industry.

First, it is important to thoroughly read and understand the case study. Make sure to pay attention to the key players, their goals and motivations, and the specific challenges or problems the company is facing. It can also be helpful to identify any underlying assumptions or contextual information that may be relevant to the case.

Next, it is important to conduct a thorough analysis of the company's situation. This can involve analyzing the company's internal and external environment, including its industry, competitors, and market conditions. It can also involve analyzing the company's resources and capabilities, as well as its strengths, weaknesses, opportunities, and threats.

Once you have a thorough understanding of the company's situation, you can begin to brainstorm potential solutions to the challenges or problems identified in the case. It is often helpful to consider a range of alternative solutions, and to evaluate the pros and cons of each option.

When selecting a solution, it is important to consider not only the potential benefits, but also the potential risks and costs. It may also be helpful to consider how the solution aligns with the company's goals and values, and whether it is feasible and realistic to implement.

Finally, it is important to develop a plan for implementing and evaluating the chosen solution. This can involve setting specific, measurable, achievable, relevant, and time-bound (SMART) goals, and identifying the resources and support needed to successfully implement the solution. It is also important to regularly assess and adjust the plan as needed to ensure that the solution is effectively addressing the company's challenges and meeting its goals.

Overall, the key to successfully solving a case study for a classic pen company, or any company in any industry, is to carefully read and understand the case, conduct a thorough analysis of the company's situation, brainstorm and evaluate potential solutions, select the best option, and develop and implement a plan for success.

Classic Pen Case webapi.bu.edu

classic pen company case solution pdf

About 7 years ago, the sales manager saw growth opportunities in colored pens and thus introduced red and purple into their product line which was sold at a premium. In their production process, for Black pens and Blue pens they did not need to clean the residual of blue ink from the previous run if they dumped enough black ink to cover the blue ink. Physical changeover Activ 3. AHMED RAZMAN ABDUL LATIFF PUTRA BUSINESSS SCHOOL 28 TH MARCH 2020 CLASSIC PEN COMPANY REPORT 1 TABLE OF CONTENTS 1. Five years earlier, they started to produce Red pens in the same factory and with the same technology. After that they started to produce Purple pens in the same factory and with the same technology at 10% premium.

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Classic Pen Company webapi.bu.edu

classic pen company case solution pdf

Unfortunately, this strategy which otherwise should be driving profitability is now exhibiting an overall decline in profits as per the financial results. Indirect expenses were aggregated at the plant level and allocate to the products based on the direct labour cost. On this basis, there were two products only and their profit margin was over 20% of the sales. GROUP 3 AMBIGA KRISHNAN PBS19201150 IRFAN YANYA PBS19231155 NUR FATIN DIYANAH BINTI MOHD ISA PBS19201157 NORSAIFUL IZZAD BIN SHAHARUL ANUAR PBS19201142 WONG YI XUN PBS19201147 ACCOUNTING FOR DECISION MAKING ACC7101 ASSOC. Not the questions you were looking for? As a result, the production process of those traditional products was not complicated at all and the process was run smoothly without any intervention and changeover time.

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Classic Pen Co.: Developing an ABC Model

classic pen company case solution pdf

But for Red pens small amount of black or blue ink create problems in their quality management. More precisely, the Red pens required more extensive changeover to meet the demanding quality specification. You will receive access to two case study solutions! Keeping records Activ 4 Assembly 22,000 11,200 4,800 14,000 Cost object Black, blue, red and purple pens Activity Cost Drivers runs set-up hours products. They had to spent lot of time for purchasing and scheduling activities to ensure their position for current, previous and future orders. But the overall profitability of the company was going down 2. Case Overview — Classic Pen Co. Costs estimated in a Traditional Costing System I Direct costs I Direct material I 50,23 0 Direct labor I 20,00 0 Indirect costs Cost Pools CPI.

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Classic Pen Company

classic pen company case solution pdf

For Red pens their premium was 3%. The production process of the Red pens and Purple pens were more complex. However, it experienced a decreasing margin on the blue and black pens and a rising cost. Overhead Blue Black Prod. Inspection: As a starting point of the investigation, we derived the cost price per pen in the traditional income statement format which was currently used by Classic Pen Co. The newly introduced Red pens and Purple pens were seems to be profitable than their traditional products- Black pens and Blue pens. At the beginning, Classic pen produced only two types of pen which were black and blue pens, operating with the low-cost production basis.

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classic pen company case solution pdf

When they introduced the Red pen and Purple pen the overhead rate became 300% of direct labour cost. Seeking an explanation for such problems, the company studied its activity-based costing ABC. Before started to produce the Red pens and Purple pens the overhead rate was 200% of direct labour cost. Moreover, the company aggregated the overhead cost on the basis of the direct labour cost. . Purple pen another newly introduced product also required demanding specification.

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classic pen company case solution pdf

To maintain their quality required more set up time. The second is not visible in the preview. . . . . .

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