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Essay text:
Based on the information given to me by the various departments involved, I have come to a conclusion that it would be to our advantage to produce the body sections ourselves rather than outsource the product. My assumptions, method of calculations, quantitative and qualitative analysis and my reflection of the results are provided below.
Assumptions
In reaching my conclusion, I have made the following assumptions.
1. We will have a 30% tax rate and we will be profitable in both scenarios.
2. The total cost of capital is $14,000,000.
3. The relationship between MOH and labor hours is the same as comp...
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