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An F4 tornado has caused extensive damage to one of your production plants at the end of the 4th quarter last year. There were no
An F4 tornado has caused extensive damage to one of your production plants at the end of the 4th quarter last year. There were no fatalities, but the destruction of the plant has decreased production capacity for Ace by 25%. The total cost of repairs to the facility and machinery is expected to be $100 million, which will be covered by existing insurance. However, it is expected that it will take an additional three months before production is back on line. While some customers will be willing to wait to purchase the vehicle, others may switch to a competitor's vehicle if there is insufficient inventory to meet demand. After assessing the situation in depth, the plant manager has provided the following options to your management team. Choose one of them to address the
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