Mueller-Lehmkuhl Case Assignment – Case Study Example
Mueller-Lehmkuhl Case Assignment Mueller-Lehmkuhl Case Assignment
1. Mueller –Lehmkuhi will make a profit $6.85 on the sales of the fastners. This is because according to the information given, the total, revenue is $103. The amount that comes from the sales of the fasteners is $96.15. The amount of the profit is deduced by deducting the amount of the sales from the total amount of the revenue (Brady, 2010). This then gives the total amount of the profit that is accrued to be $6.85. The amount of the profit that is accrued from the sales of the attachment machines is $96. This because of the explanation that is given on the sales of the attaching machines, the total amount of the revenue is $103, and the amount of the revenue from the attaching machine is $7. Then this gives the amount of profit that is accrued from the attaching machine to be $96.
2. According to the information that is given in the exhibit 9, the numbers that are given are not accurate. According to the data, the following are the five representative products; S-spring, Ring, Prong (B), Prong (SS), and Tack. The amount of the costs are $39.86 $37.94$ $9.65 $14.14 $28.17 and the total direct labor cost are $1.32 $1.43 $0.14 $0.27 $0.66. When this is added together, they can not total to the averaged selling prices. The averaged prices of the products are; $46.75 $39.83 $15.28 $20.32 and $38.40 respectively for the five representatives of the product (Brady, 2010). For the two costs mentioned above to total to the averaged price when added together, the total costs excluding the direct labor costs should be as follows; $45.43, $38.4, $15.14, $20.05, $37.74 respectively.
3. In order for one to give a definitive answer for the question two there is a need for addition information. The addition information that is actually required in this case is the provision of the exact price at which the products were sold (Brady, 2010). This is because without the exact amount at which each product was sold, one will always be forced to estimate the cost and never get the correct answer.
4. To compete better with the Japanese, one can change the firm’s pricing strategy by lowering the prices of that firm below the ones for the Japanese (Brady, 2010). However I would not implement this because when the prices go down one may not meet the expenses that were incurred in the production of those commodities and this would mean selling at a loss.
5. Richard Welke Should worry about the Japanese because customers that buy from his company can easily shift to the Japanese market. The first reason for the worry is that with the high economic rate, people always would like to buy where the prices are low as for the case of the Japanese (Brady, 2010). The fact of the high quality of the ML products would not constrict people to buy the ML’s goods because there is a big group of people who value quantity more than quality. Another reason is that in future, the Japanese may also increase the quality of products so as to completely out fit their competitors, which is another threat altogether.
Donald L. Brady (2010). Essentials of International Marketing. M.E Sharpe, Inc: USA.