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Case Assignment 1 Due Date: Friday 19 May 2017 at 2:00pm This case assignment carries 20% marks for ACCT431, ACCT573 and 30% for ACCT331. This case assignment is to be done in groups of 3 to 4 students. The assignment is to be web submitted via My Web. Please include names of all group members including the student numbers. The case study (slightly modified) is from the text book of Kaplan, R.S. & Atkinson, A.A. (1998) Advanced Management Accounting (Third Edition) Prentice Hall, New Jersey, pages 113-116. The case study is presented below: The Modern Pen Company. Jane Hayvice, controller of the Modern Pen Company, was concerned about the recent financial trends in operating results. Modern Pen had been the low-cost producer of traditional BLUE pens and BLACK pens. Profit margins were over 20% of sales. Several years earlier Dennis Smith, the sales manager, had seen opportunities to expand the business by extending the product line into new products that offered premium selling prices over traditional BLUE and BLACK pens. Five years earlier, RED pens had been introduced; they required the same basic production technology but could be sold at a 3% premium. And last year, PURPLE pens had been introduced because of the 10% premium in selling price they could command.