Instructions:
As a team, explore the factors that Easton management should consider before making their final decision. Write a 1-page memo to Bjorn Borg describing the analysis that the company should perform. Be sure to address the following in your analysis:
- What role might contribution margin per unit of limited resource play in this decision?
- Should the marketing department be involved in the decision-making process? How important is consumer demand?
- Should the company consider expanding their production facilities or purchasing additional equipment?
- How might this change affect their company brand or the customer’s perception of their brand? Will they be appealing to a different market by only offering yacht anchors?
