ClassicPen Case Assignment
You should hand in one page of analysis and two sets of supporting calculation.
The first supporting calculation is an ABC system for ClassicPen, constructed by filling in the blanks in the following table. First allocate the total expenses in each row to the various activities, based on information in the case. Then choose a cost driver and calculate the rate per unit of the cost driver.
Handle Production Runs Set up
Machines Keep Product
Records Run Machines Total
Indirect labor & related fringes 14,000 11,200 2,800 $28,000*
Computer systems $8,000 $2,000 $10,000
Machinery 8,000 $ 8,000
Maintenance 4,000 $ 4,000
Energy 2,000 $ 2,000
Total activity costs 22,000 11,200 4,800 14,000 52,000
Cost driver # of runs Setup time DL Hours Machine Hours
Total quantity of cost driver 150 runs
(Exhibit 2) 526 hours 2000 10,000
Allocation rate per unit of cost driver 146.67 21.29 2.40 1.40
*This includes half of the $16,000 fringe benefits. The other half is associated with direct labor – don’t forget to include it in your ABC income statement!
The second supporting calculation is an ABC income statement showing sales revenue minus each type of direct and indirect cost assigned to the four pen types. Add two lines at the bottom of the income statement: one line shows the operating profit per unit...
...The Pen is Mightier
At the end of my freshman year of high school, my girlfriend broke up with me. She was the only girlfriend I had ever had and it was an understatement to say that I was completely devastated. I had always written a little on my own and had done well in English classes, but I never wrote as much as I did that summer. I was hurt, angry, and feeling incredibly insecure. Writing was my salvation. It was the only way I had to express my feelings because I did not really have anyone to talk to about my feelings and concerns. For the entire summer, I moped around and wrote depressing poems constantly. I was miserable.
When school started again, I was not very happy about it at all. I would have to see my ex-girlfriend everyday with her new boyfriend. I tried not to let it bother me, but I couldn’t help it. I spent my time alone during lunch reading or writing pieces about the things I dealt with that day in school and about the girl who spun me into this writing frenzy. My classes, for the most part, were not very interesting and I had lost all interest in being at school. My English class was a writing class and the only class that seemed at all appealing at grand ole Woodville High. The teacher, Mrs. Garner, seemed really nice and I thought that it could be a fun semester. She had been the school’s Teacher of the Year for four of the last five years.
We were given assignments to write about, but, for a change, the topics we...
...Analysis of Black Pens to Determine Unknown Sample
Paper chromatography was performed on five different black pens, using four different solutions to determine which would be most appropriate to use on an unknown sample. Paper chromatography was then performed on the unknown sample to identify which pen was used to create it.
Each person participating in the analysis was assigned one solution to work with: V. Temple used distilled water, D. Sellers used a 20% ethanol solution, J. Chadwick used a 50% ethanol solution and J. Sanchez used a 90% ethanol solution. Each participant used the same procedure with their assigned solution, repeating it for each of five ink samples. The pens used were a Sanford Vis a vis, a Sharpie fine point, a Dixon Visaid, a Sharpie calligraphy and a generic felt tip. A strip of chromatography paper measuring about 13 cm x 2.5 cm was marked with pencil 2.5cm from one edge, on this line a pen was used to mark a dot. The marked end of the strip was then suspended in solution to a depth of about 1 cm without allowing the strip to touch the bottom of the container. The strip was then allowed to react with the solution until the solution travelled to a height of about 10 cm. This was repeated with each pen being tested in each solution. After the solution had travelled about 10 cm, the chromatography strips were removed and allowed...
...Pilot: Water Resistant Pen
There is a large variety of products in the world that are being offered to the consumer to purchase and most, if not all cases, there is always a product, such as a pen, that is being produced by multiple companies. An advertising campaign should appeal to the audience and make it convenient for the audience. It should highlight the advantages that this product or company has compared to the other competitors. The image of a produce is also very important, you have to make quality products which require putting time and effort into what you are trying to pitch. Even having the right advertisement and image, it won’t mean anything to anyone if it isn’t marketed right, places like magazines, radio stations or even television programs. Even though an advertisement might be clear with the initial design, it has to diversify to wide range of people. I believe that my advertisement is affective because it is a quality brand that everyone knows. The advisement is simple but catches the reader’s attention without being puzzling or the use of tricks. It appeals to wide variety of audiences but doesn’t try to accommodate to everyone. Not everyone may be in a circumstance where water is present while they are writing but it doesn’t hurt to have that as a safe plan. My advertisement has been seen in all sources of media outlets and is commonly named. These products are of quality and they spend their money to please the...
At the time of launch, Reynolds pens were much expensive (around 2.5 times) then the competitors products at that time. The offerings which were in the un organized sector were of poor quality. Reynolds used the skimming price strategy and became a successful brand. Besides, Reynolds also had a sturdy product casing (apart from a good, uniform flow of ink which ensured easy writing). Reynolds at that time capitalized on quality, which made consumers buy the product even at premium price, as they perceived it is reliable brand. Its
Advertisements created awareness but the association came from ‘price quality’ perception in that of pen market. Reynolds achieved scientific pricing by working on the technology, in the context of how much those products would cost if imported.
Later on Reynolds targeted young generation through its romance ads. The young crowd which are largest users of pen in India were selected as target customer, and extensive product range was launched catering to their requirement, Currently Reynolds use Sachin Tendulkar as their brand Ambassador to help connect better with India’s younger crowd. Also the brand is now perceived to consist of cheap but high quality products.
The company's products are available in 3, 00,000 retail outlets across India covered through a network of 2500 redistribution stockists and 27 main stockists. This is facilitated by a sales and marketing team...
...sharpies, paint, pastels, chalk, and 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
the use of the pencil avoids the little ticks and dashes which the pen is almost always certain to
leave attached to rapid shorthand writing. Pens will leave constant pen marks and cause
unwanted messes which will take a great time and effort to clean up. However, with pencils there is
no such problem with dots, leaving hands completely spotless. A pencil can be broken into
many other tiny pencils, while breaking a pen does not lead to many, tiny, little pens. In the long run,
pens can dry out and be useless. On the other hand, pencils can be used again and again, saving
people time from going to their local office supply store, and instead being able to spend
more time doing the activities that he or she enjoys most.
Pencils are healthier and easier to use. The...
...1. Calculate the revised product costs for the four pens, based on the activity information collected by Dempsey1. Calculate the revised product costs for the four pens, based on the activity information collected by Dempsey1. Calculate the revised product costs for the four pens, based on the activity information collected by Dempseyvvv1. Calculate the revised product costs for the four pens, based on the activity information collected by Dempsey1. Calculate the revised product costs for the four pens, based on the activity information collected by Dempsey1. Calculate the revised product costs for the four pens, based on the activity information collected by DempseyACCT81701: INTERNAL COST MANAGEMENT AND CONTROL
CLASSICPEN COMPANY: DEVELOPING AN ABC MODEL CASE
This case may be completed in groups of two or individually. You are responsible for finding a partner if you choose to complete the case with another student.
Purchase and read the Harvard Business School Case: ClassicPen Company: Developing an ABC Model located at the following link: https://cb.hbsp.harvard.edu/cbmp/access/27312446. (Note: The last case for the course, Foxy Originals is also contained in this course pack and should also be purchased for your final case).
After reading the case, perform the following:
1. Calculate the...