1. Read the Pelarsen Windows: Humansv.Robots case,available in the DRR. 2. Prepare a case analysis report
following the General Case Analysis process outlined in
After working through this case analysis, you will be able to
? describe the levers of profitability (e.g., price, product mix, customer profitability, process design)
available to a firm and choose which ones apply to this specific situation.
? explain how volume-based overhead allocation impacts the real profitability of products as firms move from low
to high variety production.
? use activity based costing to compute production cost, inventory cost, and quality costs associated with
? explain the importance of working capital management as a tool for enhancing profitability.
? estimate the effect of poor quality costs using the four Cost of Quality categories of prevention, appraisal,
internal failure, and external failure.
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