Case_study_11_Nanotech Inc

In addition he wants you to prepare the usual

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In addition, he wants you to prepare the usual detailed analysis of all the manufacturing variances (Direct Materials, Direct Labour, Variable Overhead and Fixed Overhead) and indicate how these manufacturing variances tie into any revised format for the Operating Income Performance Report you might come up with. Lastly, in view of the fact that the company plans to operate at only 170,000 units in 2011 as a result of the current recession, which is well below capacity, he has been asked by the Marketing department to determine the minimum selling price the company would accept on a one-time special order request they have received for 40,000 process control switches from a non-regular customer. He wants you to include a brief explanation of your reasons for coming up with the minimum price that you calculate and what other factors the company should take into account. Mr. Levy has asked you to include these three things in your long memo addressed to him along with supporting schedules. These must all be received by her no later than Friday April 15 th , 2011 In summary, your long memo should include the following: 1. A brief discussion of what you understand to be the problem with the current Operating Income Performance Report format and how your proposal for an alternate format would correct this problem by providing more specific information. You should include a copy of the
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  • Winter '12
  • Farrar
  • Revenue, ........., Overhead information, Nanotech Inc.

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