Abstract
Students take on the role of entrepreneur Sungi Cho, who began developing tactical gear using 3D printing technology while serving as a U.S. Army Blackhawk helicopter pilot. As the business grows, Cho must decide whether to expand his in-house 3D printing capacity or outsource production using injection molding. Although injection molding offers lower unit costs, it requires a significant upfront investment in a custom mold. Cho is uncertain whether this investment is justified given his projections for future demand.
Learning Objective
To illustrate differential analysis – the comparison of alternative decisions based on their relevant costs and benefits.
Appropriate for the Following Course(s)
managerial accounting, entrepreneurship
Teaching Note and Supplemental Materials*
*TEACHING NOTES AND SUPPLEMENTAL MATERIALS ARE ONLY AVAILABLE TO EDUCATORS WHO HOLD TEACHING POSITIONS AT ACADEMIC INSTITUTIONS.