Textbooks for Change
(4 pages of text)
In May 2015, the chief executive officer (CEO) of a small social enterprise was trying to decide how to expand its business. Textbooks for Change collected used texts from universities and supported African entrepreneurs and universities by donating text sales proceeds or through the distribution of donated materials to deserving schools. The CEO was considering expanding the business to collect textbooks from universities outside its region, and wanted to assess the potential financial viability of three targeted universities.
This case is recommended for introductory courses in managerial accounting at the first- or second-year undergraduate level. After completion of this case, students should be able to:
- Classify costs and use this knowledge to analyze a decision quantitatively.
- Understand the purpose and mechanics of a breakeven analysis.
- Practise using breakeven analysis as an analytical tool.
- Recognize the importance of working within corporate constraints when making a decision.
- Learn about social enterprise businesses and find out what makes them successful.
Canada, Small, 2015
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