Ivey Publishing
Moximed Inc.
Product Number:
9B14B004
Publication Date:
04/17/2014
Revised Date:
04/19/2016
Length:
8 pages (6 pages of text)
Product Type:
Case (Field)
Source:
Ivey
The CEO of a newly formed corporation had just finalized several outsourcing agreements to manufacture MoxiMed’s flagship product, the MoxaLamp. The MoxaLamp was designed to replace the practitioner’s role in administering moxibustion, a popular form of traditional Chinese medicine therapy. Now that the MoxaLamp was ready for production, the CEO must select a target market and set the appropriate selling price.
Learning Objective:
The focal point of the case can vary as potential topics include cost behaviour, marketing strategy and business-to-business marketing tactics.

  • To encourage students to consider various factors (cost, competition and willingness to pay) when deciding on product pricing.
  • To give students practice at calculating a product’s direct, absorption and full cost.
  • To illustrate absorption costing’s usefulness as a decision-making too.
  • To demonstrate how full cost per unit changes with volume.
  • To illustrate the necessity for full cost per unit data for long-term pricing decisions.
  • To educate students on the differences between business-to-business marketing and business-to-end-consumer marketing.
Issues:
Disciplines:
Accounting,  International,  Entrepreneurship
Industries:
Health Care Services
Setting:
China, Small, 2014
Intended Audience:
Introductory
Price:
$3.15 CAD / $3.10 USD Printed Copy
$2.65 CAD / $2.62 USD Permissions
$2.65 CAD / $2.62 USD Digital Download
Associated Materials
Translations: Simplified Chinese (7 pages)
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