week before delivery, the customer indicated that it could only take 600 of the 800 items. Because of the long-standing relationship MFMI decided to accept this revised arrangement and mandate the sales team to sell the remaining 200 items in the market for at least $7000 per item. At the end of the period the sales team reported to management that they have identified buyers who were willing to purchase the 200 items at a rate of $6100 per item and at the management’s preferred price only 140 of the 200 would be sold. Give Evidence-based / calulations on recommendations on whether to overhaul/retool the factory and continue in operations, do not retool but continue operating or the sell the company and exit the industry
week before delivery, the customer indicated that it could only take 600 of the 800 items. Because of the long-standing relationship MFMI decided to accept this revised arrangement and mandate the sales team to sell the remaining 200 items in the market for at least $7000 per item. At the end of the period the sales team reported to management that they have identified buyers who were willing to purchase the 200 items at a rate of $6100 per item and at the management’s preferred
Give Evidence-based / calulations on recommendations on whether to overhaul/retool the factory and continue in operations, do not retool but continue operating or the sell the company and exit the industry.
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