Message-ID: <14481691.1075843091684.JavaMail.evans@thyme>
Date: Fri, 11 Feb 2000 03:35:00 -0800 (PST)
From: kelly_p_davis@yahoo.com
To: jeff_dasovich@enron.com
Subject: Re: Group Think
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X-From: Kelly Davis <kelly_p_davis@yahoo.com>
X-To: Jeff_Dasovich@enron.com
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Hi Jeff,

I changed my 'out of town' plans and will be making it to the case review 
session this weekend.
see you on Saturday!!  ps. is your office easily accessible via bart?

- Kelly

Also, here's fyi some of the questions that I came up with when going over 
the case...
1. Problem #1 and #2: When calculating incremental cost do we include fixed
costs (i.e. $10,000 for tooling plastic rings) and do we include sunk costs
materials for the steel inventory?  In addition, do we need to break out the
overhead into fixed and variable and include only the variable portion in
the calculation of incremental cost?

2. Problem #3: What are we supposed to be comparing to calculate
differential cost of the 25,450 steel rings?

3. Problem #4: What time period should we include in calculating profit?  Is
it enough to look strictly at present time (per unit costs)? Or should we
look at profit over for example 5 years (from looking at the replacement
rate of plastic rings)?

4. Problem #5: Once we calculate problems #1 - #3, do we assume that
Burggeman is the only plastic ring producer?  And should we look at customer
desire to reduce their costs by buying plastic over steel rings because of
the difference in usable life?


--- Jeff_Dasovich@enron.com wrote:
>
> Ok, looks like the Orbit Room can't handle the size of our group so there's
> been a proposed change of venue for Saturday's meeting.  If anyone has
> alternative suggestions, feel free to propose.
>
>    Accounting discussion 10AM-11AM  (for Tues/Thurs folks)
>    Marketing discussion 11AM-Noon (for all)
>
>    Meet at my office.
>
> 101 California Street (one block from the cable car turnaround)
> Suite 1950
>
> Enter at the California Street entrance
> Buzz at the door; guard will let you in
> Guard will know to enable elevator to get you to the 19th floor
> I'll keep the door to the office ajar so that folks can enter easily once
> on 19th floor
>
> Sound reasonable?  Did I miss anything.
>
>
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