MANEGERIAL ACCOUNTING CASE STUDY.
CASE ASSIGNMENT #1: Cortland Manufacturing, Inc.
We constantly seem to be pricing ourselves out of some marketsand not charging enough in others. Our pricing policy is prettysimple: we mark up our full manufacturing cost by 50%. That means acomputer that costs us $2,000 to manufacture will sell for $3,000.Until now I thought this was a workable approach, but now I’m notso sure.
Steve Works, CEO, Cortland Manufacturing, Inc. (CMI)
Steve’s Controller, Sally Nomer, had just told him that shebelieved the computers might be priced inappropriately. Stevecontinued: