E1-1 Making Decisions Using Managerial Accounting

Suppose you are a sales manager for Books on Wheels, Inc., which makes rolling book carts often used by libraries. The company is considering adding a new product aimed at university students. The new product will be a small, collapsible, wheeled tote designed specifically to aid students in transporting textbooks across campus.

Required:

1. List five questions you and the company would need to answer before proceeding with the development and marketing of this new product.

2. For each question identified in requirement 1, identify the information you would need to answer the question as well as the expected source of that information.

3. Identify three serious consequences of either not obtaining the information you need or obtain- ing inaccurate information.