What we need from you is to identify which option makes


Samba Sneakers

You are learning that there's always a new challenge that needs your analysis and attention. You returned from a quick lunch to find another e-mail waiting for you from Cynthia Crowninshield.

E-mail

From: Cynthia Crowninshield

Re: Your help on Samba Sneakers

Just heard from marketing that it's a green light for production of Samba Sneakers. These brightly-colored sneakers will be aimed at teens and pre-teens and have colorized rubber soles.

Here's the problem. We can't move forward unless we are confident we can produce the sneakers cost-effectively.

As I see it, we have three options:

· Recondition the existing equipment at the Shanghai facility
· Buy new equipment for the Shanghai facility
· Outsource production to a vendor in China

What we need from you is to identify which option makes sense based on the range of production.

Expect an e-mail from Alistair Wu with information about the machinery options, and one from Angela Down about the outsourcing. By the way, please don't mention to Alistair that we are considering outsourcing--he's touchy about any production that isn't in-house.

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Cost Accounting: What we need from you is to identify which option makes
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