Operations Management homework help. TOPICS TO BE COVERED
- Relevant Revenues and Costs
- Using Differential Analysis to Make Decisions
- Qualitative Factors
Your Discussion should be a minimum of 250 words in length and not more than 450 words. Please include a word count. Following the APA standard, use references and in-text citations for the textbook and any other sources.
Continuing with the company selected in Unit 2 (TOYOTA COMPANY), think about the types of financial data that would be included and excluded in differential analysis. Propose which specific revenues and costs should be considered in an evaluation to drop or keep a:
- Product line
In addition, explain sunk and opportunity costs as they relate to your selected company. Should these costs be considered in differential analysis? Why or why not?
- Submit a paper which is 2-3 pages in length (no more than 3-pages), exclusive of the reference page. Paper should be double spaced in Times New Roman (or its equivalent) font which is no greater than 12 points in size. The paper should cite at least two sources in APA format. One source can be your textbook.
Please describe the circumstances of the following case study and recommend a course of action. Explain your approach to the problem, perform relevant calculations and analysis, and formulate a recommendation. Ensure your work and recommendation are thoroughly supported.
A vacuum manufacturer has prepared the following cost data for manufacturing one of its engine components based on the annual production of 50,000 units.
|Description||Cost per Month|
In addition, variable factory overhead is applied at $7.50 per unit. Fixed factory overhead is applied at 150% of direct labor cost per unit. The vacuums sell for $150 each. A third party has offered to make the engines for $60 per unit. 75% of fixed factory overhead, which represents executive salaries, rent, depreciation, and taxes, continue regardless of the decision. Should the company make or buy the engines?
Superior papers will:
- Perform all calculations correctly.
- Articulate the approach to solving the problem, including which financial information is relevant and not relevant.
- Correctly conclude on whether the company should make or buy the engines.
Propose other factors that should be considered when making this decision and elaborate on whether or not those factors do or do not support the decision.
Be sure to use APA formatting in your paper.
- Qualitative factors are non-financial in nature but are important for management to consider when making decisions. Reflecting on a company for which you have worked (or are otherwise familiar), describe three qualitative factors that would be important for management decision-making. Then, assess each of them in order of importance. Given your assessment, justify a situation where the qualitative factors would outweigh the quantitative results. Be specific.
As portfolio activities are to be self-reflective, please make sure to connect the portfolio assignment to:
- Your personal experiences. Reflect on how this assignment topic is applicable to and will benefit you.
- Course readings and any external readings.
- Discussion forum posts or other course objectives.
The Portfolio Activity entry should be a minimum of 500 words and not more than 750 words. Use APA citations and references if you use ideas from the readings or other sources.