You have recently been hired as Executive Assistant to the Board of Directors of Dyna Tech Inc. The financial statements of the company for the year ended December 31, 19_6 have just been released and they are disappointing. After years of success as a high-tech wonder company, it appears that Dyna Tech has fallen on hard times. The Executive Committee of the Board of Directors has taken the position that the companys financial difficulties have come about largely because of two pro- jectsthe Series 3000 and Zeus. Some of the other directors are not so sure. They feel that, with some guidance from the Board, the companys management can work things out, since they are essentially on the right track. The Board of Direc- tors was determined to make some decisions at their March 31, 19_7 meeting. In the meantime, they would consider two outside reports on the projects (see Exhibit A5- 1 and Exhibit A5-2). The Executive Assistant would also be asked to comment at that time. The Company Dyna Tech Inc. was launched over 20 years ago in Calgary by James Cousins, an en- gineer. The company began by manufacturing touch-tone telephone converters and, later, telephone switchboards and other communications switching equipment for small and medium-sized businesses. As the company grew, more communica- tions equipment was added to round out a Private Branch Exchange (PBX) line of products directed to the same market segment. It did not take long for Dyna Tech Inc. to acquire an image as a high-technology wonder company. Sales grew from $12,000 in its first year to almost $350,000,000 ten years later. This sales success was based largely on the companys ability to supply reliable, state-of-the-art communi- cations products to the middle portion of the market. As the company grew in size, it expanded geographically. While the head of- fice, including sales management personnel, remained in Calgary, production was shifted to facilities in Toronto and Montreal. Manufacturing was later undertaken in Britain, France, and the United States. Sales offices were located around the world as well. Over the years, the most popular Dyna Tech products have been the Series 100 and Series 200 analogue solid state switches. Dyna Tech has a worldwide installed base of over 100,000 of its PBX switches, mainly in the low to medium segment of the market. (This market segment is broadly defined as one having an installed cost of $100,000 or less per unit.) Of these switches, more than half are Series 100 or Se- ries 200 products. It has been company policy to keep the customer happy by sup- plying whatever Dyna Tech expertise and equipment might be relevant to the A-7 A-7 CASES Three admission pricing policy options were identified as follows: 1. Admit senior citizens and preschool children free of charge and promote GSC more vigor- ously. It was estimated, for example, that a $200,000 increase in annual promotion and ad- vertising expenditures would generate a 10% increase in total number of admissions. 2. Charge a discounted admission price for senior citizens and preschool children. 3. Admit senior citizens and preschool children free of charge and convince the municipality to continue the subsidy. EXHIBIT A4-3 GSC Admission Pricing Policy for Second and Subsequent Years Case 5: linear programming (smac)