A department general manager has to decide whether or not to calculate a light compressor on the line, at what price, and add volume to produce what. The analysis requires maximization post in a situation where a limited factor. As such, it takes into account opportunity costs and shadow prices and fixed and variable costs, demand curve analysis and sunk costs. Also invites to discussions about the proper measurement and provides departmental profits and return on sales how can … Read more »

A department general manager has to decide whether or not to calculate a light compressor on the line, at what price, and add volume to produce what. The analysis requires maximization post in a situation where a limited factor. As such, it takes into account opportunity costs and shadow prices and fixed and variable costs, demand curve analysis and sunk costs. Also invites to discussions about the proper measurement and provides departmental profits and return on sales as candidates.
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Francis J. Aguilar
Source: HBS Premier Case Collection
4 pages.
Release Date: 04 September 1990. Prod #: 191053-PDF-ENG
Catawba Industrial Co. HBR case solution

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