Case Study

There is no specific format required for the entirety Patterson Manufacturing Case; however, all requirements should be answered in a grammatically correct and organized format, including your calculations.

A recommendation to the vice president is part of requirement 5, and I suggest that you begin your submission with a memo to the VP summarizing your findings.  Use your answers to requirements 1-4 as backup for the recommendations in your memo.

1. Using the controllers projections, prepare an analysis of the expected effect of outsourcing the product on Pattersons profitability.

2. Would it be a viable alternative to produce the product locally and lower the price to achieve the increase in sales volume?

3. Does the firm have an obligation to maintain employment levels in the town?

4. What risks are associated with the proposal?

5. Make a recommendation to your vice president on whether the proposal should be accepted. Provide your reasoning and any suggestions for additional or alternative actions that Patterson should take.

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