Blackheath Manufacturing CompanyCase

Group Number: ____

Student Names: _____________________________________________________________________________

___________________________________________________________________________________________

Instructions:

a)Enter your group number and names in the space provided above.

Write your case analysis directly in this file by entering your response to items (d) through (h) directly under each respective item. Do not change any of the settings in this document (i.e., font, margins, footer, etc.).

You will also need to complete the Excel template that accompanies this case. Do not change the structure of the main spreadsheet at all (i.e., don't enter/delete/resize rows or columns, change page layout, change footers, etc.).

Save your files (both Word and Excel), using the following naming convention:Group#_Blackheath

b)Read the Blackheath case in its entirety.

c)Open theCost of Great Heaths Template(Excel file) and follow the instructions in the Excel file to complete the template. The file is posted in the Assignments folder.

d)Explain in your own words why the cost of goods sold (top page 6) per unit falls as the level of activity increases.

e)What do you think of the decision rules recommended by Lee High? Be specific when making your points.

f)What do you think of Mr. Blackheath's decision that the sales representatives sell at $8.00 with a 15% commission?

g)Evaluate the decision made by Adelaide Ladywell. Do you agree or disagree, and why?

h)Summarize three main points that emerged from your analysis

i)Based on your analysis of the case, develop an appropriate set of decision rules for pricing the Great Heath.