In this assignment, you will play the role of the instructor.

Essentially, you will be creating an exercise and a corresponding answer key.

In fact, this is one of the most effective means by which true understanding of a concept or topic is demonstrated. You must understand the concept before being able to effectively "test" others' understanding.

Note: Please read all of the provided information, including the required deliverables, before beginning the assignment.

Exercise Information

Please choose one common business decision. These include:

• Make or buy decisions
• Keep or drop a product line, business unit, department, etc.
• Retain or replace equipment, machinery, factory, etc.
• Sell or process further
• Accept a special order

Provide the following for the decision you chose:

Part 1: Describe a specific setting, the decision, decision alternatives, and any other information that would comprise an interesting and challenging problem.

Part 2: Create a "deliverable" list for the person who would be completing the problem. This deliverable list should be comprised of (at least) two calculations and (at least) one qualitative discussion deliverable (i.e., requiring explanation, additional considerations, etc.).

Part 3: In general, ensure that your exercise tests the person's knowledge related to the use of relevant information in decision making. That is, your exercise should contain some relevant and some "irrelevant" information so that the person must distinguish between the two types of information.

Further, your exercise should allow a person to demonstrate their understanding related to at least two of the following items:

• Opportunity costs
• Sunk costs
• Allocated fixed costs
• Fixed-cost per unit information

Part 4: Finally, you should provide a solution for your exercise.