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MBA FBX5010 Assessment2 1.docx MBA-FBX 5010 Assessment 2: Product Pricing Recommendat

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MBA FBX5010 Assessment2 1.docx MBA-FBX 5010 Assessment 2: Product Pricing Recommendation MBA-FBX 5010 Accounting Methods for Leaders Acme Pickle Corporation The Acme Pickle Corporation, bas... ed in Jacksonville, FL, has distributed pickles under the œFlorida™s Best brand for eight years. The company normally produces between 8,000 and 10,000 cases of pickles a month and has the capacity to produce 12,000 cases without adding equipment or personnel. The owner of a twenty-store supermarket chain in Wisconsin, called Super Deals, visits friends in Florida and is impressed with the quality of "Florida's Best" pickles. He approaches you, an Acme Pickle account manager, with an offer to buy 2,000 cases of pickles to use in a special promotion at his stores. He is thinking of something such as: "Free jar of Florida's Best pickles with every purchase of forty dollars or more”this month only!" He offers Acme a price of $9.50 per case, knowing that it is a very substantial discount from the normal selling price of $20 a case. Acme's management is inclined to turn the offer down, because their cost is calculated at $10.00 a case. They believe they would lose money if they sold at $9.50 a case. You, on the other hand, believe that some errors have been made in the cost accounting. Goal: Suggest a different way of calculating the pricing of the pickles that may be lower while addressing variable and fixed production costs, the benefit of recalculating the cost of pickle production and how fi. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. .. . . . . . . . . . . . . . . . . . .. . . . . [Show More]

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