BUSN 6070 - Professor Dorr
Suggested Preparation Questions:
1. Guilia is clearly intrigued by the options that have opened for her.
If she were to accept the customer's c
2. Using Stanley's operating cost as your best-guess data about operating the forge, perform a simple break-even an
three basic business model configurations- the current outsourcing arrangement versus owning and operating the
3. Is the above analysis informative? How can Guilia use or expand the break-even calculation to add to her unders
4. What other information given in the case is relevant to her next move? What other data should she be seeking?
5. Based on your analysis, what advice would you give Giulia?
1. Break even units/dollars for current outsourcing arrangement.
2. Break even units/dollars for owning the forge with guaranteed offer of orders.
3. Break even units/dollars for owning the forge with 10% higher orders.