Lets Go Case Study Essay

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Pages: 11
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ISSN 1940-204X

Let’s Go Aero Travel Trailers: A Case for Incorporating the New Model of the Organization into the Teaching of Budgeting
Sally Wright University of Massachusetts-Boston

INTRODUCTION
Let’s Go Aero manufactures travel trailers bought primarily by young families and retirees interested in a light, low-cost trailer that can easily be pulled by a mid-sized family car. The market for travel trailers has expanded nicely over the past few years due to the number of families seeking a relatively low-cost, outdoor vacation experience. But in the view of Let’s Go Aero’s president, Mark Newman, the real growth in the future is in the retiree market. Newman believes the vigorous health of the average retiree, coupled with the …show more content…
Aluminum can provide a weight savings of up to 55% compared to an equivalent steel structure, improving gas mileage significantly. The aluminum industry and suppliers are dispersed across four-fifths of the country, yet they are largely concentrated in four regions: the Pacific Northwest, industrial Midwest, northeastern seaboard, and mid-South. Although this is a broad geographic presence, Let’s Go Aero will be affected by distribution costs. Vicky Draper, Let’s Go’s vice president of purchasing and materials handling, is eager to implement just-in-time as a way of lowering Let’s Go’s aluminum cost. To offset the expense of distribution, Let’s Go is located in Pennsylvania. Vicky’s projected 20% bonus, recently announced by Mark and effective for year-end 2011, is based on her ability to lower total material cost. Initially enthusiastic about her job and ability to earn a significant bonus, Vicky has become discouraged and angry. She is unable to convince Let’s Go’s current aluminum supplier to sign a prime vendor
IM A ED U C ATIO NA L C A S E JOURNAL

Aluminum Other materials Wages Heat, light, & power Equipment rental Equipment purchases Depreciation Selling & admin

$816,000 54,000 624,000 130,000 390,000 300,000 250,000 400,000
April

$1,056,000 264,000 1,008,000 195,000 390,000 300,000 250,000 400,000
May

$888,000 222,000 1,104,000 220,000 390,000 300,000 250,000 400,000
June

Aluminum Other materials Wages Heat, light, & power Equipment
Show More

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