To answer the following questions, please use the article "Over-land Trucking and Freight: Relevant Costs for Decision-Making*" by Thomas L. Albright, Paul Juras, and Russ Elrod.

Alan James, Over-lands founder, and Roger Simmons, Over-lands operations manager, are reviewing a proposal from its largest customer, FHP Technologies, to add delivery routes that would improve the efficiency of FHPs supply chain. Alan and Roger ask for your help.

Please help Roger prepare a response to Alan in regard to helping Roger knew he had to make a convincing argument before FHP took its offer to another truck line.

Pg 2, 2nd paragraph: As the two men left the room, Roger was convinced that Alan was wrong. Roger knew that Alan was leaving money on the table. He just needed to prepare a financial analysis that would prove it. Was it possible to squeeze out more capacity from an already fully utilized fleet? Perhaps they could shift trucks from another account. Was taking on more debt truly risky given the profit potential of this new route? Roger knew he had to make a convincing argument before FHP took its offer to another truck line.

To help Roger, please remember he is trying to convince Alan, who is the founder of the company, to change his mind. You need to focus on addressing Alans concerns. One way of doing this is to consider using as-is, what-if or hybrid (meaning a combination of the first two) scenarios. Example: As-Is - Alan, if we do not pursue the offer (i.e., as-is) then here are my thoughts:..."

What-If Alan, if we do pursue the offer (i.e., what-if) then here are my thoughts:..."

Hybrid Alan, another way to pursue the offer is with some modifications (i.e., hybrid); thus, here are my thoughts:..."

FYI: Exhibit 1 has a few minor discrepancies: 1) Exhibit 1 re Income from Operations: bottom says Total Variable but should say Total Fixed.

2) Exhibit 1 re Income from Operations: the subtotals for:

Total Revenue = $26,325,570 s/be $26,325,560 diff $10 Total Variable = $15,638,480 s/be $15,668,470 diff $29,990 Total Fixed (see above for correction) = $6,975,280 no diff Income from Operations = $3,681,810 s/be $3,711,810; however, the sum of s/be = $3,681,810. That is, the total is fine but the subtotals are a bit off. These discrepancies are minor so they should not impact your analysis.

Also, for Exhibits 1 and 2, which present Over-land Trucking and Freights income from operations for the year ending December 31, 2013, and balance sheet for the year ending December 31, 2013, please treat these two financial statements as though they were prepared in 2022 and the whole case is written in 2022.

* As a reminder, in that year concerns such as increasing fuel prices, rising inflation, and interest rates, securing qualified staffing and maintaining a steady and reliable supply chain, etc. were in play.*

COMPLETE THE FOLLOWING REQUIREMENTS IN A MEMO FORMAT.

Executive Summary Summarize your memo by recapping the case, your discussion & analysis, your one recommendation, and your conclusion.

Purpose Why are you writing this memo? Why is this memo important?

Background Provide background and context to the case.

Discussion & Analysis Here is where you would help Roger. Please remember he is trying to convince Alan, who is the founder of the company, to change his mind. As result, your discussion and analysis needs to include addressing Alans concerns. One way of approaching your analysis and response is to consider using as-is, what-if or hybrid (meaning a combination of the first two) scenarios; see examples above. That is, analyze the situation and then share your thoughts. Also, define terms, concepts, topics, etc., as needed, to help the reader follow your train of thought.

Recommendation Here is where you make your one recommendation -- as-is, what-if or a hybrid (meaning a combination of the first two) with support. (Note: A good recommendation is one that is reasonable, appropriate, and doable for the situation.) Also, your recommendation should include two three advantages and two three disadvantages. As for the disadvantages, please include an action plan of how to overcome and/or minimize each.

Timeline Here is where you would establish a timeline to implement your recommendation. Please be specific on when, such as the date, time, how, and why.

Conclusion - Summarize your memo by recapping the case, your discussion & analysis, your one recommendation, and your next steps, repeat your next steps.