The President of Wilkerson, faced with declining profits will struggle to understand why the company meets severe price competition in a product line, while being able to raise prices without competitive response to another product line. The controller suggests that the company is to develop an activity-based cost model to better understand the different requirements that each product line enables the organization of the indirect and support resources. A rewritten version of an earlier case.

The President of Wilkerson, faced with declining profits will struggle to understand why the company meets severe price competition in a product line, while being able to raise prices without competitive response to another product line. The controller suggests that the company is to develop an activity-based cost model to better understand the different requirements that each product line enables the organization of the indirect and support resources. A rewritten version of an earlier case.
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Robert S. Kaplan
Source: HBS Premier Case Collection
4 pages.
Release date: 07 March, 2001. Prod #: 101092-PDF-ENG
Wilkerson Co. HBR case solution