Please answer all 4 questions

Exhibit 1: Patterson Manufacturing Five Year Summary of Operations War2 za Year! S1114 $75 33 $44 573 Tlc also said, "By outsourcing the Gudgcon EC140, we can release three administrative managers.cight administrative support staff, 128 general production personnel, and 10 superisors. The firm will incur and time charge of $1 million for severance pay and pension contributions for dismissed cmployees We'll also need to spend 204,000 for the costruction of receiving facilities for the coured product The controller continued "The supplier's cost quocation (Exhibit needs to be adjusted for the expected 15% increase in volume. The cost for materials and labor will increase proportionately, but the overhead and other costs are unlikely to be elected. The supplier's mark up will be 10% of the new total cost. In addition to the productcost. I'm will incurre from the man warch. The transportati Cac variable and will be seen on million for the volume of putin 5743 STU 579.3 3198 5155 STI: $19 Sales Products Show Research Parmar 5744 $942 $1.5 $13 599 SI1 52 45 912 510 THE TASK Exhibit 2 Summary Income Statement for Patterson Manufacturing Exhibita Distribution of Current Patterson Employees by Job Title and corporate-level management. Paterson has remained profitable since the acquisition, but its retum on investment has been declining Your first stop at the Pacerse complex is a meeting with che controller. lle provides come additional background: *Jessica, like her predecessors, spent most of her time with customers developing new products to meet customer needs. She didn't concern herself with costs. Customers were willing to pay for products that solved problems. Upon Jessica's retirement Columbea appointed Paul, our former productie manager, to CEO. Paul has done wonders in rationalizing and standardizing our product lines. Ile subcantially reduced nutacturing cits, which led to record profits in the two pax Reling the sale of the many. The curly results have spently high expectatices for criming formou. Our al will help me a meeting the expectation," he sail "Our proposal is ning largest-selling product, the Cusan EH40, and instalatie ir firman OVERCI supplier "continue the petroler This product Currently of coal sales revenue an production volume But sales have been declining because competitors are offering a similar product at lower prices we think that by reducing our price by 5% we can in TCISCO unit saks volume hy 15%. The increased volume coupled with a lower product cost from the offshore supplier shouki ncarly double our firm-wide profit." The controller la provided one supporting documents. Exlubitsumandes operations for the live years since Patterson Memulcucing was sold to Columbia Halling. Year 1 represents the last full year after Jessica ere, and Year is the year that just post. Exlib 23, and provide an income statement for years, the current employee stalling levels by johticle, and a detailed price valimile VI pplier lle conder es "The clix is pretty Suwan. Sale of the Cit EH40 $27 milli lyck. The materials came to $14.3 Millice, while anche al $4.2 millions were alle leil che lut. But only 7.9 million of the enched will cided if we stop manufacturing the Gudlgcon E40 The remaining overhead costs are nearly all fixed and not subject to reduction in the near future. Our direct selling costs consist mostly of an commissie paid to sales representatives. In addition, there's a $2 million advertising allowance devoted to promocing the Gadgeon 110 in trade magazines. After his brief overview the corroller hands yees the exhibits and say "You should go through the numbers yourself to Cure that my projection for the increase in profit is correct As you make your way to an emper office to review the numbers, the marketing manager approaches you. She plads, Don't let them do this. The proposed action will decal devastating financial blow to cur community Wesloy Pameron would have never approved suchelle bed this town." Ninter werage Salary Per Frak $933 OSS Grey 23 59 24 31 bitalir Mary ANSAT firri Geral Pand 16 Cpert REQUIRED 1. Using the controles projections propean analysis of the expected electol oluring the product on Pallero's probably 2. Would it be a valle alternative to podle the end kcally and lower the price in where these in ves Exhibit Off-Shore Supplier's Price Proposal for the volume of Product in Year 5 3. Deexile lilionean egin to maintain comment levels in the nun? 4. What risks are well with the sal S. Make a membacanya viesieni whether the proposal should be xccpeed. Trovide your reasoning and any suggestions for additional or alternative actions that Parterson should take $12 13 Cati Cost 15 ABOUT IMA With a wide com han fe, IMA ce of Mummi is the wall leakling agri.er in tit:lizaleil eeuRMEt in Hari: and finance professionals to drive business performance IMA provides a dynamic forum for professionals to advance their careers through CMA (Cortified Management Accountant certification, research, professical education, noworking and advocacy of the highest ethical and professional standards. For more information about EMA. please visit www.imce Prof Makao Total Priem S216 prawa IMA EDUCATIONAL CASE JOURNAL 2 VOL. NU. 4. ART. 1, DECEMBER 2013 IMA EDUCATIONAL CASE JOURNAL 3 VOL. NU. 4 ART 1, DECENBEN 2013 Exhibit 1: Patterson Manufacturing Five Year Summary of Operations War2 za Year! S1114 $75 33 $44 573 Tlc also said, "By outsourcing the Gudgcon EC140, we can release three administrative managers.cight administrative support staff, 128 general production personnel, and 10 superisors. The firm will incur and time charge of $1 million for severance pay and pension contributions for dismissed cmployees We'll also need to spend 204,000 for the costruction of receiving facilities for the coured product The controller continued "The supplier's cost quocation (Exhibit needs to be adjusted for the expected 15% increase in volume. The cost for materials and labor will increase proportionately, but the overhead and other costs are unlikely to be elected. The supplier's mark up will be 10% of the new total cost. In addition to the productcost. I'm will incurre from the man warch. The transportati Cac variable and will be seen on million for the volume of putin 5743 STU 579.3 3198 5155 STI: $19 Sales Products Show Research Parmar 5744 $942 $1.5 $13 599 SI1 52 45 912 510 THE TASK Exhibit 2 Summary Income Statement for Patterson Manufacturing Exhibita Distribution of Current Patterson Employees by Job Title and corporate-level management. Paterson has remained profitable since the acquisition, but its retum on investment has been declining Your first stop at the Pacerse complex is a meeting with che controller. lle provides come additional background: *Jessica, like her predecessors, spent most of her time with customers developing new products to meet customer needs. She didn't concern herself with costs. Customers were willing to pay for products that solved problems. Upon Jessica's retirement Columbea appointed Paul, our former productie manager, to CEO. Paul has done wonders in rationalizing and standardizing our product lines. Ile subcantially reduced nutacturing cits, which led to record profits in the two pax Reling the sale of the many. The curly results have spently high expectatices for criming formou. Our al will help me a meeting the expectation," he sail "Our proposal is ning largest-selling product, the Cusan EH40, and instalatie ir firman OVERCI supplier "continue the petroler This product Currently of coal sales revenue an production volume But sales have been declining because competitors are offering a similar product at lower prices we think that by reducing our price by 5% we can in TCISCO unit saks volume hy 15%. The increased volume coupled with a lower product cost from the offshore supplier shouki ncarly double our firm-wide profit." The controller la provided one supporting documents. Exlubitsumandes operations for the live years since Patterson Memulcucing was sold to Columbia Halling. Year 1 represents the last full year after Jessica ere, and Year is the year that just post. Exlib 23, and provide an income statement for years, the current employee stalling levels by johticle, and a detailed price valimile VI pplier lle conder es "The clix is pretty Suwan. Sale of the Cit EH40 $27 milli lyck. The materials came to $14.3 Millice, while anche al $4.2 millions were alle leil che lut. But only 7.9 million of the enched will cided if we stop manufacturing the Gudlgcon E40 The remaining overhead costs are nearly all fixed and not subject to reduction in the near future. Our direct selling costs consist mostly of an commissie paid to sales representatives. In addition, there's a $2 million advertising allowance devoted to promocing the Gadgeon 110 in trade magazines. After his brief overview the corroller hands yees the exhibits and say "You should go through the numbers yourself to Cure that my projection for the increase in profit is correct As you make your way to an emper office to review the numbers, the marketing manager approaches you. She plads, Don't let them do this. The proposed action will decal devastating financial blow to cur community Wesloy Pameron would have never approved suchelle bed this town." Ninter werage Salary Per Frak $933 OSS Grey 23 59 24 31 bitalir Mary ANSAT firri Geral Pand 16 Cpert REQUIRED 1. Using the controles projections propean analysis of the expected electol oluring the product on Pallero's probably 2. Would it be a valle alternative to podle the end kcally and lower the price in where these in ves Exhibit Off-Shore Supplier's Price Proposal for the volume of Product in Year 5 3. Deexile lilionean egin to maintain comment levels in the nun? 4. What risks are well with the sal S. Make a membacanya viesieni whether the proposal should be xccpeed. Trovide your reasoning and any suggestions for additional or alternative actions that Parterson should take $12 13 Cati Cost 15 ABOUT IMA With a wide com han fe, IMA ce of Mummi is the wall leakling agri.er in tit:lizaleil eeuRMEt in Hari: and finance professionals to drive business performance IMA provides a dynamic forum for professionals to advance their careers through CMA (Cortified Management Accountant certification, research, professical education, noworking and advocacy of the highest ethical and professional standards. For more information about EMA. please visit www.imce Prof Makao Total Priem S216 prawa IMA EDUCATIONAL CASE JOURNAL 2 VOL. NU. 4. ART. 1, DECEMBER 2013 IMA EDUCATIONAL CASE JOURNAL 3 VOL. NU. 4 ART 1, DECENBEN 2013