Description
Monroe Clock Company, a producer of electrical timers, is trying to decide how to price a new device by considering variable versus fixed costs, the relevance of certain costs, and information regarding capacity utilization. The A case can be taught independently or in conjunction with the B case (UVA-C-2229), which considers the method of overhead allocation and its impact on the cost of the household timer.
Publishing Authority:
Darden Business Publishing – University of Virginia
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