442 McAdam

內容大綱
The owner of a designer handbag company, 442 McAdam, found she could no longer manufacture in-house the quantity of handbags required to meet existing orders. Manufacturing would need to be outsourced, and the owner would have to choose between a local manufacturer and an overseas manufacturer. Local manufacturers offered the same quality as overseas manufacturers but charged higher prices. International manufacturers, while offering lower prices, required larger minimum order quantities. Regardless of the manufacturing option she chose, the owner wondered whether the minimum levels of inventory she needed to order could be sold within the upcoming six-month style season.
學習目標
This case can be taught in an introductory managerial accounting course at the undergraduate university level. To aid in their decision-making, students can use cost behaviour and contribution analysis as financial tools, as well as an analysis of inventory management. More specifically, students are required to perform the following:<ul><li>Calculate unit contribution and contribution margin ratio.</li><li>Project overall contribution levels for each manufacturing option.</li><li>Determine how much, if any, excess inventory may exist as a result of outsourcing manufacturing.</li><ul>
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