Monroe Clock Company (A)
6 Pages Posted: 21 Oct 2008
Monroe Clock Company, a producer of electrical timers, is trying to decide how to price a new device by considering variable versus fixed costs, the relevance of certain costs, and information regarding capacity utilization. The A case can be taught independently or in conjunction with the B case (UVA-C-2229), which considers the method of overhead allocation and its impact on the cost of the household timer.
Keywords: cost allocation, pricing
JEL Classification: M40, M46, D40
Suggested Citation: Suggested Citation