Going Postal: Analyzing Operating Income of the Wheels of Fortune

Abstract

This case reinforces managerial accounting concepts, provides an active learning environment, and fosters soft skill development. Students quantify and analyze the impact changes in sales mix and manufacturing variances have on operating income. Supported by their calculations, students provide, in a professional memorandum, short and long-term recommendations for improvement. Feedback from 107 undergraduate and graduate students enrolled in managerial and cost accounting courses demonstrate case effectiveness in reinforcing the knowledge, comprehension, application, and synthesis of managerial accounting concepts. In addition, the case requirements foster soft skill (e.g. critical thinking & decision making skills) development and information technology proficiency.