I.         Case Analysis Overview Cumberland Metal Industries (CMI) is one of the largest metal manufacturers in the world. The company evolved from selling metal as a finished product to one that used it as a raw material, increasing sales from $250,000 in 1963 to over $18,500,000 in 1979. Currently, CMI relies heavily on SlipSeal, which is used as a high-temperature sealant in automobiles. Although CMI dominates the market for this product, corporate sales figures decreased over the last year. …showed first 75 words of 5032 total…

…showed last 75 words of 5032 total…With the tremendous cost savings obtained by using the metal pads and absence of current competition, CMI should price as high as possible up to the EVC. For the 11 ½" pads this would mean a price of $1170, which would leave the customer a value of $230 per pad. However, as a first time buyer, CMI may offer Colerick a price of only $800, while selling to distributors for $900 so they can obtain a 30% margin in selling to contractor