Business finance - accounting assignment | Accounting homework help
- Analysis. This section must include the following information:
a. Describe the method of analysis used to answer the case questions and explain why it was used to address the case problems. b. Analyze the tactical and strategic information provided by the optimal solution and sensitivity report in Part A: · What is an optimal output plan for the company?
· What factors could lead to even better level of performance:
· For each department, what is the marginal value of additional overtime capacity? · What is the marginal value of additional advertising dollars? · What is the marginal value of additional sales for each product? · What is the trade-off between advertising expenditures and increased sales for Hawley Co. If the advertising budget to be increased, how it would affect the production plan? Assume that you increased the advertising budget by the amount of the allowable increase, how this advertising budget change would affect the optimal production plan? (1 point)
c. Analyze the optimal solution obtained in Part B:
· Should the Hawley’s management consider the offer? If yes, how much of pendant light units should be outsourced and how many units should be produced in-house. (0.5 points)