Submitted by anuppie on March 25, 2008

• Category: Business
• Words: 796
• Pages: 4
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Computron Inc

COMPUTRON INC. CASE
I. Problem Identification:
What bid price should Computron Inc. set, so that the Computron can achieve management’s profits target, match the customer’s requirement and be competitive with respect to the competitors?

II Alternatives:
1) Bid Price : $ 746,880.00 within 20% offered by Digitex pricing of $ 622,400.
- Will sell less than factory cost of $ 768,000, hence no profit and reduces cash flow required for future investments.
- Computron will lose premium quality image, since Konig will assume quality was compromised to reduce price.
2) Bid Price: $ 1,046,400, within 20% of Ruhr’s pricing of $...

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