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Through the months ending October 31, 1993, KRH's profits were almost $150,000 and were projected to total about $180,000 for the year.
In the long term, KRH thought that significant price increases could slow their growth and therefore did not show a feasible path to long-run profitability. Instead of this, KRH wanted to focus on cost reductions by continuing to increase the level of automation in the production process. To do this, it required many investments to automated woodworking equipment and in continuous upgrading of their computer software and hardware. KRH also planned to put together a marketing effort that would require around $40,000...
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