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Instructions >> Enter your name and Access ID ('aa1234' format) in the cells above. The data required for this case will not appear until you
Instructions >> Enter your name and Access ID ('aa1234' format) in the cells above. The data required for this case will not appear until you do so. >> You are a financial manager for Zoom Corp., which manufactures bicycles. In the most recent fiscal year, Zoom manufactured and sold 20,000 bicycles. Wheels, seats, and brake calipers are three components of the bicycles currently manufactured by Zoom. Three different vendors have proposed to provide those components to Zoom, and quoted prices (including shipping) for their delivery. Your task is to determine which, if any, of these proposals should be accepted. >> Prepare a make vs. buy incremental analysis for each possible course of action in an Excel worksheet. Your grade will be based on the correctness of your answers, as well as the use of Excel. That is, where possible, you should use formulas to get your answers, rather than keyed-in values. See your instructor for help with Excel basics if you need it. >> In a Word document, prepare a memo stating which of the proposals you suggest accepting, as well as the basis for your conclusions. Also identify any nonfinancial factors you should consider before accepting any of the outsourcing proposals. Wheels Seats Calipers Cost category Direct materials Direct labor Variable overhead Fixed overhead Total cost Units produced Cost per unit Hints: Prepare incremental analyses for each component separately. Make wheels vs. buy wheels, etc. Since there are additional implications to outsourcing both seats and calipers, do a make vs. buy analysis assuming both are outsourced. A correct solution, then, will likely have at least four incremental analyses.
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