Part Three: Management would like you to make a recommendation to either continue operating in the existing plant or constructing a new plant. You will use the information you have gathered from the Cost- Volume-Profit Analysis and the budgets you prepared. There is no right or wrong answer, this is based on your analysis and understanding of the company. Management strategy over the next 5 years is to add additional product lines, the current plant would need to be remodeled, but the new plant is large enough to be able to accommodate these plans if demand is there