Case+6-Requirements+and+Guidelines

Case+6-Requirements+and+Guidelines - Team Project Standard...

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Team Project – Standard Costing Prepared By: Dr. Linda Bamber with revisions by N. Erenguc Cabletronix is a contract manufacturer of electronic components, including Cisco- equivalent cables. Cabletronix has a number of network installers who are regular customers for the company’s cables. To grow its business, Cabletronix has joined a business-to-business trading community. Sales manager Jenny Wang informs CEO Elizabeth Pronai of a potentially promising order for 1,000 Cisco-equivalent cables on the trading community’s web site. Cabletronix has enough excess capacity to fill the order. However, this is a large order and Pronai recognizes that meeting the job’s three-week deadline will require a coordinated effort of the cable division, and may disrupt completion of some existing orders. Still, Pronai believes the company must move in this direction to be successful. Pronai checks with Cabletronix purchasing manager Steve Hunt, who tells her that the company has the necessary supply of wire in stock, but would have to rush order the connectors. Production manager, Tony Alvarez suggests that he could manage the production schedule by hiring a temporary worker and using overtime. Finally, Pronai asks Wang for a sale price that would give Cabletronix a good chance of landing the order. Based on the information these managers provided, Pronai sends the following email: Subject : Special Web Cable Order Date : October 22 From : Elizabeth <EPronai@Cabletronix.com> To : Tony <TAlvarez@Cabletronix.com> Steve <SHunt@Cabletronix.com> Jenny <JWang@Cabletronix.com> Thanks for your quick response to my request for information on the feasibility of meeting the special order. I have summarized our expected “actual” quantities and costs. Please consider
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Case+6-Requirements+and+Guidelines - Team Project Standard...

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