$6\mathrm{.}02$ Week $6$ Discussion: Plant Closing Decision $-$ Group $3$

From ACCT$51011-$OL$21-$Managerial Accounting$\_$Summer $248-$Week$\_$ONLINE

Use your discussion group to complete this assignment. Discuss with your group the following case using this discussion board. Once you have come to a group resolution clearly label that final post as $"$

QualSupport Corporation manufactures seats for automobiles, vans, trucks, and various recreational vehicles. The company has a number of plants around the world, including the Denver Cov makes seat covers.

Ted Vosilo is the plant manager of the Denver Cover Plant but also serves as the regional production manager for the company. His budget as the regional manager is charged to the Denver Cov Vosilo has just heard that QualSupport has received a bid from an outside vendor to supply the equivalent of the entire annual output of the Denver Cover Plant for $$35$ million. Vosilo was astor low outside bid because the budget for the Denver Cover Plant's operating costs for the upcoming year was set at $$52$ million. If this bid is accepted, the Denver Cover Plant will be closed down

The budget for Denver Cover's operating costs for the coming year is presented below.

$\backslash$table$[[\backslash$table$[[$Denver Cover Plant$]]],[$Materials$,.,$$$14,000,000$

$\backslash$table$[[$Depreciation$-$equipment,$3,200,000,],[$Depreciation$-$building,$7,000,000,],[$Pension expense,$5,000,000,],[$Plant manager and staff,$800,000,],[$Corporate expenses,$4,000,000,20,000,000$