Essay about Yo Yo Singh

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For exclusive use at EDHEC - Business School, 2015
Harvard Business School

Rev. September 17, 1998

Classic Pen Company: Developing an ABC Model
The Classic Pen Company Case
Jane Dempsey, controller of the Classic Pen Company, was concerned about the recent financial trends in operating results. Classic Pen had been the low-cost producer of traditional BLUE pens and BLACK pens. Profit margins were over 20% of sales.
Several years earlier Dennis Selmor, the sales manager, had seen opportunities to expand the business by extending the product line into new products that offered premium selling prices over traditional BLUE and BLACK pens. Five years earlier RED pens had been introduced, which required the same basic
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Making black ink was simple; we didn’t even have to clean out the residual blue ink
Professor Robert S. Kaplan prepared this case as the basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation.
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This document is authorized for use only in Cost accounting & Management Control by Arnt VERRIEST, EDHEC - Business School from September 2015 to March 2016.

For exclusive use at EDHEC - Business School, 2015

Classic Pen Company: Developing an ABC Model

from the previous run if we just dumped in enough black ink to cover it up. But for the RED pens, even small traces of the blue or black ink created quality problems.
And the ink for the new PURPLE pens also has demanding specifications, but not quite as demanding as for RED pens.
We seem to be spending a lot more time on purchasing and scheduling activities and

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