Blackheath Manufacturing Company

Luann J. Lynch

University of Virginia - Darden School of Business

Francis Spreng

affiliation not provided to SSRN


Lee High, the newly hired cost accountant at Blackheath Manufacturing Company, computes the variable cost and the fixed cost per unit on a weekly volume of 500 units of Great Heath. He uses this information to develop some pricing guidelines. His boss, Charlton Blackheath, endorses the guidelines and adds a feature: a higher commission on sales at a higher price. While both High and Blackheath are away, the file clerk, Adelaide Ladywell, accepts an order below the guidelines and is fired. Students are asked to develop an appropriate set of decision rules for pricing Great Heath and to evaluate Ladywell's decision. See also "Blackheath Manufacturing Company--Revisited" (UVA-C-2198).

Number of Pages in PDF File: 5

Keywords: pricing

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Date posted: October 21, 2008  

Suggested Citation

Lynch, Luann J. and Spreng, Francis, Blackheath Manufacturing Company. Darden Case No. UVA-C-2197. Available at SSRN: http://ssrn.com/abstract=908093

Contact Information

Luann J. Lynch (Contact Author)
University of Virginia - Darden School of Business ( email )
P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-4721 (Phone)
434-243-7677 (Fax)
HOME PAGE: http://www.darden.virginia.edu/faculty/lynch.htm
Francis Spreng
affiliation not provided to SSRN
No Address Available
Feedback to SSRN

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