CMA2 - ACCT2170 - Case Study - Winter06 The case study, which is due Friday April 21 st , will be based on the information in Case A-16 in Appendix A on pp. 763-764. Read the case details including the information given in Requirement #3 relating to the Pipeline mode, but ignore all the rest of the Required and instead follow the commentary and instructions given below. ________________________________________________________________________ The president of Sun Concepts, Robert Bork, has asked the Controller, Laura Spence, to review the way the company is costing its products. The company uses manufacturing cost as a basis for setting prices and has determined that overall, the selling prices of its products seem to be out of line with the prices of competitors. For example, the very popular Pipeline model is priced much lower than competitors whereas all other models are priced well above the products of competitors. As a result, profits are declining along with sales for some models. Mr. Bork has a gut feeling that this all has
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