Publications
Publications
- September 1986 (Revised April 1990)
- HBS Case Collection
Mueller-Lehmkuhl GmbH
Abstract
Mueller-Lehmkuhl sells apparel fasteners and rents attaching machines. It views these two products as effectively a single item and prices them accordingly, the fasteners at high profit and its attaching machines at a loss. The cost system allocates the cost of the attaching machines to the fasteners. The Japanese have entered the market and found a way to unbundle the two products. As a result they are challenging the European way of doing business. The case asks the student to analyze the true cost and profitability of the products.
Keywords
Citation
Cooper, Robin. "Mueller-Lehmkuhl GmbH." Harvard Business School Case 187-048, September 1986. (Revised April 1990.)