Learning Objective
- Illustrate differential analysis – the comparison of alternative decisions based on their relevant costs and benefits.
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.
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.