Product details

The special projects manager of Mega Corporation, must make a recommendation to Mega''s owner, about Mega''s investment in a television production facility at Clark Special Economic Zone, the Philippines. Initially the investment was to have been Mega''s first venture into being an original equipment television manufacturer; sourcing parts and selling the output on its own. Recently, however, Aiwa and Mega have had negotiations about the plant becoming a sole supplier for Aiwa''s new initiative into television production. Under this arrangement, Mega would assemble televisions for Aiwa from parts either sourced through Aiwa or sourced on its own - if these parts were less expensive yet met Aiwa''s standards. Mega''s profits would be about $2 per unit plus 50 per cent of any cost saving on the components it sourced.