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This analysis should be conducted from a qualitative and quantitative aspect. You should identify at least two pros and two cons of the proposal. Then

This analysis should be conducted from a qualitative and quantitative aspect. You should identify at least two pros and two cons of the proposal. Then you should provide a summary of the results of your analysis. You will need to determine if MML should move forward with the order.

image text in transcribed MML recently received a request from MATS, a large services company that is in the process of upgrading their head office in Winnipeg. They are currently seeking a customized line of furniture that reflects the dcor and functional needs of the office. The specifications of the order are: Type of furniture: Contemporary ergonomic office furniture including desks, storage units, and conference tables. Quantity: The order is for 50 desks, 30 storage units, and 10 conference tables. Customization: The furniture requires customization in terms of size, material, and colours to align with the branding of the organization. MATS has proposed a price of $4,000 per conference table, $1,000 per desk, and $2,000 per storage unit. This results in $150,000 for the complete order, excluding taxes and shipping. The taxes and shipping will be paid by MATS. John has gathered the following information based on the specifications of the order: Per Unit Information *Direct fixed labour is the salary of the production floor manager who assists with the manufacturing and assembly of the furniture. Fixed manufacturing overhead costs is allocated based on total fixed costs for the year divided by 50,000 units of furniture. John is also concerned about the price that MATS is proposing. Normally, customized desks sell in the showroom for $1,500, storage units retail for $3,000, and large conference tables have been selling for $8,000. At first glance, it does not appear that the order is going to be very profitable. However, John also knows that this company is planning major expansions across Canada, and if he does a great job, MML may get the contract for those new office. After consulting with Eric, the production floor manager, John is confident that there is enough capacity right now to accept this order

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