James Manufacturing & Technology James Manufacturing and Technology (JMT) manufactures private-label small electronic products such as alarm clocks, calculators, kitchen timers, stopwatches, and automatic pencil sharpeners. The company is located in Waycroft, Ga. Some of the products are sold as sets, and other are sold individually. Products are studies as to their sales potential, and then cost estimates are made. The Engineering Department develops productions plans, and then production begins. The company has generally had very successful product introductions. Only two products introduced by the company have been discontinues. One of the products currently sold is a multi-alarm clock. The clock has four alarms that can be programed to sound at various times and for varying lengths of time. The company has experienced a great deal of difficulty in making the circuit boards for the clocks. The production process has never operated smoothly. The product is unprofitable at the present time, primarily because of warranty repairs and products recalls. Two models of the clocks were recalled, for example, because they sometimes caused an electric shock when the alarms were being shut off. The Engineering Department is attempting to revise the manufacturing process, but the revision will take another 6 months at least. The clocks were very popular when they were introduced, and since they are private-label, the company has not suffered much from the recalls. Presently, the company has a very large order for several items from Target stores. The order included 7,000 ;of the multi-alarms clocks. When the company suggested that Target purchase the clocks from another manufacturer, Target threatened to rescind the entire order unless the clocks were included. JMT has there investigated the possibility of having another company make the clocks for them. The clocks were bid for the Target order based on an estimated $9.52 cost to manufacture: Circuit board, 1 each @ $2.25