Case Study: Classic Pen Company 1- Cost of production of the pens according to ABC method: INDIRECT FINGE BENEFICT INDIRECT LABOR TOTAL indirect Labor Indirect Labor Computer System Other Overhead Total overhead Quantity Overhear Rate 8‚000 20‚000 28‚000 Production Runs Setup Time Administration Run Machines 14‚000 11‚200 2‚800 8‚000 2‚000 14‚000 22‚000 11‚200 4‚800 14‚000 150 526 4 10‚000 146.67 21.29 1‚200.00 1.40 Total 28‚000 10‚000 14‚000 52‚000
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PARKER PEN COMPANY Background George Safford Parker founded Parker Pen Company in 1892 in Janesville‚ Wisconsin. It began with the production of his first fountain pen. Afterwards in 1894‚ Parker had its first major innovation; “the lucky curve” which consisted on reducing the leak caused in fountain pens. Parker’s first marketing approach was to produce high quality pens and make them become status symbols; Parker pens were signer’s favorite‚ giving the company the first or second position
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the most frequently used‚ pen and pencil. Since pencils are better for the environment‚ are less time consuming‚ have erasers‚ and save money‚ they are the most beneficial of all writing implements. Pencils are infinitely better than the pen because they are much less time consuming. A pencil glides over the paper much more quickly‚ which affords a more rapid of execution than the pen. Rapid pencil writing is easier to read than rapidly-made pen marks‚ for the reason that
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THE CLASSIC PEN COMPANY Activity Based Costing case study Topics • About The Classic Pen Company • Issues • ABC introduction at TCPC • Managerial implications • Recommendations School of Business and Economics - Opleiding tot Registercontroller (EMFC) About • Classic Pen Company is a low cost provider of traditional BLUE and BLACK pens • High profit margins (over 20% of sales) • Cost allocated on basis of traditional cost price method • Introduction of new colors (RED and PURPLE
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Principles of Managerial Accounting 70-255-04 Classic Pen Company: Developing an ABC Model Submitted to: Peter Roth Submitted by: Jessica Bodnar 104042988 October 21st‚ 2014 Classic Pen Company are a low-cost producer of traditional blue and black pens. By adding red and purple pens they could add a 3% and 10% premium‚ respectively. Making the red and purple inks were more complicated but seemed more profitable‚ however their overall profit margins were going down
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Ricardo Carter Jan 16‚ 2013 SCM 371 BIC Pen: Case Study This value chain analysis of the BIC Corporation is occurring to provide individual with the knowledge of the thought process that businessman/businesswomen in the supply chain field use every day when deciding what company to purchase a certain product from. This process includes the breaking down of the company’s financial report and whether the product is eco-friendly. Financial report of any company usually includes material cost‚ manufacturing
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INTRODUCTION The Classic Pen Company; originally producing Black and Blue Pens‚ decided to enlarge it’s product portfolio by introducing new products in the market. The sales prices are determined as %3 more for Red nd 10% more for Purple with an expecance of higher margins. With the coming products production started to cry out on the difficulties of producing the new red and purples stating that they need extra workload for production‚ planning and keeping track of the information. On the
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The Classic Pen Company A Case Analysis The Classic Pen Company – A Case for Activity Based Costing Introduction: • Low-cost producer of traditional Blue and Black ink pens • Profit margins of over 20% of sales • 5 years earlier- introduced Red Pens using same technology at 3% premium • Recently‚ introduced Purple Pens using same technology at 10% premium. Classic Pen Company – Issues facing the Management ISSUE 1 - Profitability While Red & Purple pens seem to be more profitable‚ overall
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Reverse Engineering of a Pen – Assignment Requirements 1) Plastic Container: the plastic container is the framework for the pen. a) Has to be plastic so it is cost efficient and can be easily manufactured. With these two properties it can be mass-produced in order to profit. b) Must be cylinder shaped in order for the ballpoint ink cylinder to fit into the plastic cylinder. c) The plastic cylinder must be in two parts. The two parts are a bottom and a top. The top cylinder’s wedges on the
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Brandon Adams Scratch of a Pen‚ 1763 #1. Colin Calloway states that the Treaty of Paris of 1763 was one of the causes of the American Revolutionary War. Identify and define all of the terms of the treaty as discussed in the book‚ how those terms affected the colonists and why this treaty is seen as the beginning of the journey to the American Revolutionary War. After the Seven Years’ War was finally over Britain signed the Treaty of Paris of 1763‚ ultimately giving Britain an empire. Ridding
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