Solution to Kreative Kasual Inc Case Study

Questions:

1.Perform a business size-up. What net profit margin does Masters appear to be targeting?

2.Determine the direct, absorption and full cost for the T-Shirt manufactured at current production levels. Repeat this analysis for both boxers and coveralls.

3.Assess each of the two tender opportunities from a qualitative point of view

4.What per-unit price should Masters bid for each tender? What is the minimum Masters could bid on each tender? Why?

5.As Masters, would you bid on either or both of these tenders? If so, at what price(s)?