• November 7th, 2018

Amp 415

Paper , Order, or Assignment Requirements

To assist the managing director in making a decision, prepare an analysis showing the total cost and the cost per drum for each of the two alternatives given above. Assume that 60,000 drums are needed each year. Which course of action would you recommend to the managing director? 2. Would your recommendation in requirement 1 be the same if the company’s needs were: (a) 75,000 drums per year or (b) 90,000 drums per year? Show computations to support your answer, with costs presented on both a total and a per unit basis. 3. What other factors would you recommend that the company consider before making a decision?

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