~~~~ 5
Accounting Cases which needs to be answered based on the attached study case
~~~
~~ There
is an attached file entitled “Patterson Manufacturing Case with Questions” ~~
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Requirements:
At the end of the attached case study there are 5 questions which need to be
answered. Additionally to answering the question, there are some additions to
each of them as listed below:
For question 1 = calculate
the
(a)
margin currently earned from manufacturing and selling the product and
(b)
expected margin from outsourcing the product, reducing the selling price, and
increasing the volume sold.
(c)
Does the margin increase or decrease, and by how much?
(d)
Are the upfront costs of $1.2 million recovered reasonably quickly?
For question 2= calculate
the expected margin from reducing the selling price, and increasing volume
sold, but retaining production locally, and compare to your calculation in
question 1 (a) above. What can you conclude from the comparison?
For question 3,4,5 give
in-depth answers.
For question 5 = Also
take a stand and recommend if the proposal should be either rejected or
adopted. Even though there is no wrong answer, the recommended action needs to
be supported by reasons and indicate how the various risks will be mitigated
(The
study case together with the values to use while calculating the requested
elements is attached to this message)
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*** The
work will be checked for plagiarism through Turnitin by the professor. It is
essential for everything to be free of plagiarism otherwise sanctions will be
imposed***
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Thank you for your support and
looking forward to working with you!
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