Question: Founded in 1983 and foreclosed in 1996 Beverly Hills Fan

Founded in 1983 and foreclosed in 1996, Beverly Hills Fan Company was located in Woodland Hills, California. With 23 employees and sales of less than $10 million, the company was relatively small. In 1992, management felt that there was potential for growth in the upscale market for ceiling fans and lighting. They were particularly optimistic about growth in Mexican and Canadian markets.
Presented below is information from the president’s letter in one of the company’s last annual reports.

(a) What points did the company management need to consider before deciding to offer the special order fans to customers?
(b) How would have incremental analysis been employed to assist in this decision?

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  • CreatedMarch 02, 2015
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