EQUIRED

$1.$ Using the controller$$s projections, prepare an analysis

of the expected effect of outsourcing the product on

Patterson$$s 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.

IMA EDUCATIONAL CASE JOURNAL VOL. $6,$ NO$.4,$ ART. $1,$ DECEMBER $20132$