Essay on Ace Manufacturing

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Comments and Solutions for Lesson 4 Cases

Of all the topics in this course, many students find Lesson 4 to be the most frustrating. I think this may be due in part to an apparent contradiction: there are lots of numbers and equations to work with, but surprisingly little certainty in our conclusions. I share your frustrations at times. Fortunately, these cases are the only “strictly financial” case studies … the only ones where number crunching is an end unto itself. However, basic financial analysis will always be an important part of our toolkit for making pricing decisions.

The document which follows contains the “answers” to these two case study assignments: Ace Manufacturing and Healthy Spring Water. Despite the
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Costs |675,000 |$735,000 |4.50 |$2.00 |4.08 |
|[pic] |
|Total Costs |1,875,000
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