Authors: David Shaw, Elizabeth M. A. Grasby – Originally written by Howard Teal
Michael Bakshi, owner of Suits for Men, Inc. (Suits), a men’s clothing store, must decide whether to replace his current tailor-made suit line with a line of medium-priced suits.
Teaching Objectives
The primary goal of this case is to expose students to a relevant cost decision. Students should focus on the revenues and costs affected by the decision, both ongoing and one-time, and the qualitative issues. Students must then determine if the business is better off with the proposed change.