Case Solution for TenAlpina Tools: Product Expansion

Complete Case details are given below :

Case Name :      TenAlpina Tools: Product Expansion
Authors :           Alfred Nanni, Paul Juras
Source :             Babson College
Case ID :           BAB278
Discipline :        Accounting
Case Length :    06 pages
Solution Sample availability : YES
Plagiarism : NO (100% Original work)
Description for case is given below :
Giulia Ferrato, a recent MBA graduate, has developed a high quality piton, a tool used in mountain climbing. Owing to the security of a customer’s offer to guarantee a significant level of demand for a two-year period, she agreed to take over the forge needed for production. She is now trying to decide whether or not to introduce a new product line, a wall hammer. Some of the current capacity can be used to make this product, but its manufacture would incur some new costs. A move away from offering only a single product line also raises the issue of cost allocations.
 
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