subject
Business, 05.07.2021 01:00 savannahwonder

The goal of Part 1 is to experience the process of establishing a price from a single perspective. Specifically, you will be acting as a buyer called PileCo. Your primary mission is to determine a price you would be willing to accept for metal pads. In Part 2, you will use this information in a synchronous meeting with a classmate in the opposite role (seller MetalCo) to negotiate a price for metal pads. You work for a mid-size construction company, PileCo, that specializes in driving piles for building foundations. Pile driving machines like the one pictured below use a powerful hammer to drive metal or cement piles into the ground to form the foundations of buildings. Each year about 300 million feet of piles are driven in the US. Current data suggests that your company enjoys a 5% market share in this business. Two months ago, you were approached by a vendor, MetalCo, promoting a new product that can be used to cushion the shock between pile driving machine hammers and the piles. Cushioning pads keep the shock of the hammer strike from damaging the pile as they are hammered into the ground. In the past, pile driving companies simply used blocks of wood which sometimes caught on fire, but for many years now you have been using unbranded pads made of pieces of asbestos-like material that you can buy from local industrial supply houses for about $3 a piece. These supply houses sell a wide variety of products needed by construction companies like yours. Your company rentsits pile-driving equipment and pays the workers an hourly wage. The rentaland labor costs together are about $150 per hour per machine. MetalCo isa small ($20m in sales) but successful firm specializing in a metal wire twisting technology typically used for making various kinds of filters for the automobile industry. Their new pad is a completely new application of this technology. It is made from metal wire twisted to form a coil and then wound to form a pad. The pad is expected to transfer the driving energy to the pile much more efficiently and is protected by a patent. They are the only vendor with such a product. After the initial visit, MetalCo left you a case of pads and you agreed to try them in one of your sites–no strings attached. Results just came back. Because of the more efficient energy transfer to the pile, the new pads increased the speed with which piles could be driven from 100 feet per hour to 150 feet per hour. This job was typical and required 15,000 feet of piles to be driven. Five of the new pads were used. Forthe same job,100 of the old pads would have been needed. You are scheduled to meet with MetalCoto negotiatebuyingmetal padsfromthem directly (i. e. skipping thesupplyhouse) for a period of 1 year. However, the vendor has not yet discussed prices. How much would you pay for the newmetalpads?

ansver
Answers: 2

Other questions on the subject: Business

image
Business, 21.06.2019 22:40, eamber646
Lincoln company has an accounting policy for internal reporting purposes whereby the costs of any research and development projects that are over 70 percent likely to succeed are capitalized and then depreciated over a five-year period with a full year of depreciation in the year of capitalization. in the current year, $400,000 was spent on project one, and it was 55 percent likely to succeed, $600,000 was spent on project two, and it was 65 percent likely to succeed, and $900,000 was spent on project three, and it was 75 percent likely to succeed. in converting the internal financial statements to external financial statements, by how much will net income for the current year have to be reduced? a. $180,000b. $380,000c. $720,000d. $900,000
Answers: 3
image
Business, 22.06.2019 07:30, kennaklein2
When selecting a savings account, you should look at the following factors except annual percentage yield (apy) fees minimum balance interest thresholds taxes paid on the interest variable interest rates
Answers: 1
image
Business, 22.06.2019 13:30, ayoismeisalex
On january 2, well co. purchased 10% of rea, inc.’s outstanding common shares for $400,000, which equaled the carrying amount and the fair value of the interest purchased in rea’s net assets. well did not elect the fair value option. because well is the largest single shareholder in rea, and well’s officers are a majority on rea’s board of directors, well exercises significant influence over rea. rea reported net income of $500,000 for the year and paid dividends of $150,000. in its december 31 balance sheet, what amount should well report as investment in rea?
Answers: 3
image
Business, 22.06.2019 21:50, elijahjacksonrp6z2o7
The third program provides families with $50 in food stamps each week, redeemable for both perishable and nonperishable food. the fourth policy instead provides a family with a box of nonperishable foods each week, worth $50. use two graphs to illustrate that a family may be indifferent between the two programs, but will never prefer the $50 box of nonperishable foods over the $50 in food stamps. state your answer and use a consumer choice model for perishable food and nonperishable food to graphically justify your choice.
Answers: 1
You know the right answer?
The goal of Part 1 is to experience the process of establishing a price from a single perspective. S...

Questions in other subjects:

Konu
Business, 26.08.2021 21:00