to this proposal.

Jared

What do you see as the main risks in this proposal?

Select all that apply, then click Submit below

Reduced flexibility in watch design

Potential anticompetitive legal repercussions

Producing lower quality cases than we typically buy

Case Manufacturing Proposal

In manufacturing our own cases to contain the internal watch components, we will need to spend roughly $$1,200,000$ to build a new facility. Currently, we offer $4$ standard cases: $2$ for men and $2$ for women. Our watch designers have been asking for more flexibility in cases, but our suppliers are reluctant to create custom molds or machinery without passing the majority of the costs onto us$.$

The proposed facility would dramatically reduce the cost of creating smaller production runs of unique watch cases. Existing suppliers require a minimum efficient run of $10,000$ units. The new facility could produce as few as $500$ watch cases efficiently.

The technology is new and expected to be reliable, but it has not been tested for wearable items for longer than $6$ months. Our current manufacturing guarantee is $5$ years for any defects in the case.

Increased costs as