The company is located in a smaller town in the Midwest and is an important employer in the region.

Employees who are laid off will have to relocate because there are not many comparable employers in the area. The average compensation for these skilled employees is $75,000 per year including benefits.

It is not known whether the increased sales will continue for more than two years. They may continue, but the future can never be predicted with absolute certainty. There is a high probability that the increased sales will continue if the company continues with its quality and quick turnaround time.

To make the numbers more realistic, please multiple all of the revenue and cost amounts given in the problem by 10. (Sales will be $20,000,000 rather than $2,000,000; variable costs will fall from $15,000,000 to $10,000,000, etc.).

As part of the corporate leadership team, you will join a task force to address this situation and provide recommendations to help the team develop a decision concerning the automation of this process. Again, profitability and cost control are critical, but the company also wants to operate ethically with respect to its customers, employees, and the environment. You will write a document to submit to this task force that explains and summarizes your ideas and your work. Follow the requirements below in your document.

1. Identify the problem that the leadership team is trying to solve and the stakeholders who are affected by the approach to solve this problem. Be sure to address the challenges of satisfying the expectations of all stakeholder groups. Remember that stakeholders are not the same as stockholders stockholders are the owners of the company and represent one stakeholder group.

2. Identify and analyze the options that the company has to solve their problem. There are always multiple options, so think about different ways to make this decision. Computations are helpful, but they need to be relevant to the decision and be explained. Address the pros and cons of the options that you have identified. Consider the material in the text about cost behavior, cost-volume profit model, and the objectives of management accounting models.

3. Write a conclusion to communicate your findings and recommendations. You will be recommending one solution in your conclusion. Explain your proposed solution and support your recommendation by explaining why it is the best approach.