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NAME NOTE: Read the case below and calculate, explain, and write up your conclusion for your choice. There are 6 questions to be answered. An
NAME NOTE: Read the case below and calculate, explain, and write up your conclusion for your choice. There are 6 questions to be answered. An example of a side by side comparison follows question 6 for demonstrative purposes - you do not need to respond to the example. Raider Red Company owns numerous facilities and production plants. The company routinely evaluates proposals as to whether they will improve operations. They are currently reviewing the four following proposals. One involves the suggestion to close the unprofitable store in the Depot District. Another is to outsource the acquisition of tortillas, rather than making them. Another proposal is to sell packaged beef to a non-competing restaurant chain under a private label. The last proposal is the throw out items with an old logo. You are the controller for Raider Red Company and are to analyze staff reports for each proposal. For each proposal, perform a side by side comparison. On one side show the results of accepting the recommendation and on the other side show the rejection of the recommendation. (Hint: Spreadsheets would be very useful for the analysis). Write up your approach to your analysis and your conclusion (your decision and why) for each scenario. Show all your work. Summary for each proposal are as follows: 2. Outsource Tortillas Proposal: The company spent a total of $2,000,000 producing tortillas during the past year. The tortillas are made at a company owned facility. A vendor has offered to supply a similar quantity and grade of tortillas for $2,200,000. Staff recommends continuing to make tortillas because the proposed purchase price is 10% higher than the cost of making tortillas. Staff believes it is inappropriate to consider that the tortilla facility could be leased to another company for $350,000, if it is diverted from tortilla production. Perform a side by side comparison. On one side show the results of accepting the recommendation and on the other side show the rejection of the recommendation. Write up your approach to your analysis and your conclusion (your decision and why). Show all your work
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