Posted: April 4th, 2013

Mueller-Lehmkuhl Case Assignment

Click here to get more on this essay….. 
 1. How much profit does Mueller-Lehmkuhl make on the sale of fasteners? On the sale and rental of attaching machines? (Hint: By deducting the $96 million from fastener sales (Exhibit 3) from the $103million total revenues (Exhibit 1), i. e.; attaching machine revenue is $7 million, OR from Exhibit 2, take number of machines sold or rented in a year, and multiply by the sale proice or annual rental fee and deduct this number from the $103 million total revenues, i. e.; fastener revenue is $96.15 million.)
2.Exhibit 9 shows the reported product costs for five representative products. How accurate do you think these numbers are? If you think they are inaccurate, what is your best estimate of the product cost? Note: Total budgeted direct labor dollars (including setup) for 1986 were $1.61 million (Exhibit 1). The direct labor dollar content (including setup) of the five representative products is:
S-spring Ring Prong (B) Prong (SS) Tack
Direct labor $ $1.32 $1.43 $0.14 $0.27 $0.66
These numbers include direct labor dollars in the finishing department.
3. What additional information would you like before giving a definitive answer to Question 2?
4. How would you change the firm’s pricing strategy to compete better with the Japanese? Would you implement this change?
5. Should Richard Welkers be worried about the Japanese?
 Click here to get more on this essay…..