Financial Management
“The Super Project” Case Analysis
December 3, 2008

Introduction and Problem Identification
Mr. Crosby Sanberg is the Manager of Financial Analysis at General Food Corporation. General Foods is currently starting a new product line called Super, which a innovative instant dessert. To produce said product, General Food would use the existing Jell-O agglomerator in manufacturing and must purchase new machinery and equipment costing $120,000 and perform building modifications for $80,000. It is early 1967 and Mr. Sanberg must decide whether or not to go through with the plans to begin the Super Project. Mr Sanberg developed three different options to evaluate the project: incremental basis (considers only incremental revenues, but fails to take into account the forgone opportunity cost of the Jell-O facilities), facilities used basis (incorrectly includes all overhead costs related to the facilities, when only the incremental overhead costs......

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Title: The Super Project Case Study
Approximate Word Count: 558
Approximate Pages: 3 (250 words per double-spaced page)

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