Business Case Studies & Business Publications

Blackheath Manufacturing Company?Revisit...

Spreng, Francis

Case

Blackheath Manufacturing Company?Revisited

Spreng, Francis

C-2198 | Published May 27, 2004 | 8 pages Case

Collection: Darden School of Business

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It's panic time at Blackheath Manufacturing. Profits have been declining, so the owner's son comes to the rescue to run the company. He asks a consultant to determine what's wrong. And the consultant has specific answers: The company's pricing guidelines are all wrong, there needs to be a budgeting system to reverse the downward slide in profits, and a former employee should be rehired. This case provides students with the data for constructing a production and raw-materials budget, flexible-expense budget, income statement, balance sheet, and cash budget. See also "Blackheath Manufacturing Company" (UVA-C-2197).