Option #1: Relevant Costs, Machine Replacement, and Opportunity Costs
For your final assignment in this course, you are required to complete both Part 1 and Part 2. Part 1 of your Portfolio can be found in Connect. Part 2 of the Portfolio Project will be completed in a Word document, following the exact instructions that accompany each part.
Complete the assigned problems in Connect. Contact your instructor if you require any clarifications. The following topics will be covered in the assigned Connect problems you will be completing for this assignment:
- Calculating the relevant cost of replacing a machine.
- Calculating the relevant cost for special orders.
- Calculating relevant costs for special orders, including opportunity costs.
- Analyzing special order decisions.
Complete this portion of your portfolio project in a Word Document. Your answers should consist of at least two pages. Write a brief memo to your CEO regarding the benefits and costs of outsourcing part of your operations to an external firm. What are some things that the company should consider when making such a decision? Give some examples of situations that could make this decision less profitable for the company. Give some examples of situations that could make this decision more profitable for the company. Discuss how the companyâ€™s current use of their capacity may impact such a decision.
- Your paper should be 2-4 pages in length.
- Submit your written assignment to the Dropbox in Canvas.
- You must follow APA guidelines with respect to use of subheadings, have one-inch margins, and be double spaced. Format your paper according to theCSU Global Writing Center. (Links to an external site.)
- References must include the textbook plus 5-6 additional credible academic references. All sources used, including your textbook must be referenced. Paraphrased and quoted material must have accompanying citations and be cited per APA guidelines. The CSU Global library is a good place to find references.
- Review the grading rubric to understand how you will be graded on this assignment. Reach out to your instructor if you have questions about the assignment.