Product details

The president and chief executive officer of Info-Tech Research Group must determine the pricing and promotional strategies for the company''s newest product offering. This case allows students to use differential analysis as a tool to aid their decision. Students are expected to: (1) perform a qualitative analysis based on the fit of Info-Tech''s new product offering within the competitive marketplace and its potential customers; (2) identify those items relevant to the decision and categorize them as either recurring cash flows or one-time cash flows; (3) understand that the recurring cash flows consist of both variable costs and fixed costs and to recognize the difference; (4) identify those items which are investments, including working capital accounts; (5) apply exchange rates so that all figures in the analysis are in the same currency; (6) calculate return on investment and payback ratios; (7) recognize the need for and perform a sensitivity analysis on the projected sales levels; and (8) make a decision based on both qualitative and quantitative analysis.