CLASSIC PEN COMPANY: DEVELOPING AN ABC MODEL CASE
SUMMER 2014
Assignment:
This case may be completed in groups of two or individually. You are responsible for finding a partner if you choose to complete the case with another student.
Purchase and read the Harvard Business School Case: Classic Pen Company: Developing an ABC Model located at the following link: https://cb.hbsp.harvard.edu/cbmp/access/27312446. (Note: The last case for the course, Foxy Originals is also contained in this course pack and should also be purchased for your final case).
After reading the case, perform the following:
1. Calculate the revised product costs for the four pens, based on the activity information collected by Dempsey. Prepare this analysis using an excel spreadsheet (please print out the spreadsheet on one page – it should fit).
2. Prepare a new Income Statement, using excel or word, for Classic Pen (by product and in total) using the ABC cost information (please print this out on one page).
3. Compare the ABC Income Statement to the Traditional Income Statement presented in the case.
4. Based on this comparison, write a memo, to me, addressing the actions this new ABC cost information could stimulate Classic Pen to pursue. Be thorough while still