Critical Thinking

Critical Thinking - Critical Thinking Cases Acc-212...

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Critical Thinking Cases Acc-212 Students are to take on the role of a mid-level manager and write to his/her supervisory manager a memo which recommends a decision in this make or buy case. Your supervisor, the VP for Sales, has asked for your advice. He has provided to you, in memo format, the instructions and facts provided above. Review the facts and prepare a memo to your supervisor. The memo should be written to comply with the Evaluation Criteria. Nicholas Ross 4/16/2010
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Nicholas Ross ACC-212-02 April 15, 2010 Case A To: Mr. Jack Nicholson, VP for Sales From: Nicholas Ross, Southern Division Assistant Sales Manager Re: Make or buy decision – speakers for XL radio Date: December 15, 2009 Primary Issue: Should Smith Company manufacture or purchase the subassembly component (the speaker)? Subsidiary Issues: Purchase will cause lay off of employees; dependence on supplier could result in significant future price increases Discussion: Based upon the following analysis, the subassembly component should be purchased rather than manufactured. You are currently spending $4 per unit on direct materials which brings direct materials total to $32,000 for 8,000 units. Direct labor cost is $3 per unit which totals to $24,000 in total
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Critical Thinking - Critical Thinking Cases Acc-212...

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