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Select a manufacturing company to examine. Imagine that the CEO of the company has established you as a member of a committee to determining whether

Select a manufacturing company to examine. Imagine that the CEO of the company has established you as a member of a committee to determining whether to make or buy key component parts of the company's final products. You have three options:

  1. The component parts can be made in-house or produced internally.
  2. The component parts can be purchased from another domestic manufacturer.
  3. The component parts can be purchased from an offshore supplier.

Required:

Write a report for the CEO in which you explain the primary assumptions and considerations used in making your decision.

  1. Explain the advantages and disadvantages associated with approaches A, B, and C.
  2. Identify the relevant financial information associated with approaches A, B, and C.
  3. Identify the relevant non-financial information associated with approaches A, B, and C.
  4. Finally, provide the CEO with a recommendation on which approach will be best to pursue by the company.

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