Qualsupport Plant Closing Decision – Essay – eelli001
Search
Essays
Sign up
Sign in
Contact us
Tweet
Index
/Business
Qualsupport Plant Closing Decision
MEMORANDUM FOR: Theodore Kennedy FROM: Erica Ellis, Director of Managerial Accounting OfficeSUBJECT: QualSupport Plant Closing Decision As we approach the close of the fiscal year, I would appreciate your review of the attached accounting income statements for the close of this year along with detailed statements that forecast the proposed recommendations for next year. In reviewing the attached analysis including the figures associated with closing the plant, it is my recommendation that the plant remains open. The total costs associated with closing the plant total a net disadvantage of $2.1 million dollars in the first year and an additional disadvantage of $1 million in the years succeeding the plant closure. Some considerations that also need to be taken into account are the current and future costs of purchasing seat covers from outside suppliers.In the event the plant is closed, there are $18 million in continuing costs that still will occur due to the continuity of the business as a whole as well as $4.3 million in non-recurring costs that are directly associated with the closing of the Denver Cover plant. As key decision makers, it is important to look at all various alternatives when assessing the offered bid. In the event the bid is accepted, it is important to look at alternative uses of the plant’s building and equipment as well as what will the supplier’s pricing be set at in years to come. Also, if the plant is to remain open, what will it cost to manufacture the covers in the coming years including any associated taxes and inflation. In the case of this bid, it is recommended that the plant remains open and the bid is rejected.
Continue for 1 more page »
Read full document
Download as (for upgraded members)
Citation Generator
MLA 7
CHICAGO
(2016, 02). Qualsupport Plant Closing Decision. EssaysForStudent.com. Retrieved 02, 2016, from
“Qualsupport Plant Closing Decision” EssaysForStudent.com. 02 2016. 2016. 02 2016 <
"Qualsupport Plant Closing Decision." EssaysForStudent.com. EssaysForStudent.com, 02 2016. Web. 02 2016. <
"Qualsupport Plant Closing Decision." EssaysForStudent.com. 02, 2016. Accessed 02, 2016.
Essay Preview
By: eelli001
Submitted: February 19, 2016
Essay Length: 378 Words / 2 Pages
Paper type: Essay Views: 411
Report this essay
Tweet
Related Essays
Decision in Philadelphia
William R. McDowell History 322 Mr. Lantzer May 11, 2008 Read Decision in Philadelphia the Constitutional Convention of 1787 by Christopher Collier and James Lincoln
261 Words | 2 Pages
Making the Atomic Bomb Decision
Making the Atomic Bomb Decision The atomic bomb killed many innocent people, but it was necessary to end World War II? After World War II
1,544 Words | 7 Pages
Plant and Animal Cells
I. Introduction All organisms in life are composed of at least one or more cells. Cells are the basic units of life. There are three
1,527 Words | 7 Pages
Crisis at Renault: The Vilvoorde Plant Closing
Task: Write a memo to Renault’s board outlining your assessment of Schweitzer’s actions and his suitability in this important international position. Do you feel he
484 Words | 2 Pages
Similar Topics
Close Encounters Third Kind
Closing Gap
Get Access to 89,000+ Essays and Term Papers
Join 209,000+ Other Students
High Quality Essays and Documents
Sign up
© 2008–2020 EssaysForStudent.comFree Essays, Book Reports, Term Papers and Research Papers
Essays
Sign up
Sign in
Contact us
Site Map
Privacy Policy
Terms of Service
Facebook
Twitter