Anogene Inc Essay

Anagene, Inc. Requirements (presenting team see NOTE at bottom)

1. Describe Anagene’s competitive environment, including its industry, its specific customer base, its product / customer heterogeneity, and the major concerns facing Anagene.*

2. Considering your answer to item 1, is it likely that the existing cost system may adversely and significantly affect decisions to emphasize certain products or affect profit? Why (a general answer is expected)?*

3. Using the Excel format on my.asu, complete the exercise for Youngstown. What “lessons” can be taken from this exercise? Do the “lessons” relate to Anagene? Give one example.*

4. What has caused the fluctuating margins for Anagene’s cartridges?

5. Should Kelly even be concerned with the assignment of overhead costs to cartridges and gross margins that include allocated overhead? Why not use variable
Refer to items 3 and items 4, what role does practical capacity, expected production, and actual production play in formulating an approach for assigning overhead? How are these matters useful to managers? Draw on text and readings for your answer.

7. What approach do you recommend that Daniel Yeltin adopt? Explain. For your recommended approach, what will be the cartridge product costs and margins?

8. Suppose sales in 2001 equal 26,000 unit, as in the budget constructed in January, and that actual manufacturing expenses turn out to equal budgeted expense. Prepare an income statement for the year (just include the manufacturing expense for expense) that will help senior management and the board understand the economics of cartridge production in 2001.

* Tier 1. Each team should turn-in an answer by email attachment to [e-mail] and his assistant (will provide email address) for these requirements by the beginning of the class in which the case is to be presented. Place the case name, your day of class, your team number, and your team members at the front of the