Read Case Study 1: Make-or-Buy Analysis (pp. 111-112) at the end of Chapter 5. In a two- to three- page paper (not including the title and reference pages), respond to the items addressed below. Make sure your responses are complete and thorough. In addition to your responses, you will be graded on the accuracy of your calculations.
Your task in this assignment is to assist the director of Wuksachi Restaurant to make a decision. Prepare an analysis showing what the total cost and the cost per dinner roll would be under each of the two alternatives given in the case study. Assume that 150,000 dinner rolls are needed each year.
In your analysis
- Determine a course of action you would recommend to the director, justifying your response.
- Provide and justify recommendations if the company’s needs were (a) 200,000 rolls per year and (b) 250,000 rolls per year.
- Describe other factors that the director should consider before making a decision.
You must cite and reference the textbook and at least two other scholarly sources. Your paper must be formatted according to APA style as outlined in the Ashford Writing Center.
- 1.To assist the director in the making a decision, prepare an analysis showing what the total cost and the cost per dinner roll would be under each of the two alternatives given above. Assume that 150,000 dinner rolls are needed each year. Which course of action would you recommend to the director?
- 2.Would your recommendation in (1) above be the same if the company’s needs were: (a) 200,000 rolls per year or (b) 250,000 rolls per year? Show calculations to support your answer, with cost presented on both a total and a per-unit basis.
- 3.What other factors would you recommend that the director consider before making a decision?