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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

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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 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: 3. Sell Packaged Beef Proposal: Aggie Company offered to buy packaged beef at $4 per pound from Red Raider Company. The packing facility is well below full capacity and can accommodate the request without incurring any additional fixed costs. However, staff believes it would be inappropriate to price the beef below its own internal costs of $4.50 per pound, which consists of raw materials ($2.50), direct labor ($0.75), variable factory overhead ($0.25), and fixed factory overhead ($1.00). This transaction would result in no material amount of added selling, general or administrative costs. Compare accepting the recommendation versus the rejection of the recommendation. Write up your approach to your analysis and your conclusion (your decision and why). Show all your work. Depot District CM Income Statement Sales Revenues $1,400,000 Variable Expenses 1,000,000 Contribution Margin 400,000 Fixed Expenses 650,000 Income (loss) $(250,000)

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