Mini-Case 11-1: Pricing for Profit

question 76

Essay

Mini-Case 11-1: Pricing for Profit
Miller Manufacturing, Inc., produces electronic components for television circuitry. Variable costs comprise 67 percent of the product's selling price. The variable costs of producing a component include:
Direct material $1.83/unit
Direct labor $6.72/unit
Variable factory overhead $ .86/unit
Vicki Miller, President, expects to produce 80,000 electronic components and to incur $280,000 of fixed costs.
-What is the minimum price that Miller Manufacturing should set for its electrical components?

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Definitions:

Technostress

The stress caused by new and advancing technologies in the workplace.

Job Rotation

A variation of job enlargement in which workers are exposed to a variety of specialized jobs over time.

Herzberg's Two-Factor Theory

A theory proposing that job satisfaction and dissatisfaction arise from two distinct sets of factors—motivators (e.g., achievements) and hygiene factors (e.g., salary).

Job Enrichment

The process of designing jobs to incorporate higher levels of motivating factors, including opportunities for achievement, recognition, responsibility, and personal growth.