Report format:

You are required to write a report to the Management of a Company as a

Management Consultant. In your report you need to advise the Management
points they should consider while taking decisions under different scenarios
such as capacity, constraints, make or buy, etc. Your report should consider
both quantitative and qualitative factors while advising the management.
Support your report with references from research articles to show wider
reading. (At least 3 to 5 articles).
1. Introduction: Approximately 400 words
Explain the importance of Marginal costing and CVP analysis in decision
making. How this will help the company in decision making. Support your
statements with references from research articles.

2. Main body of the report based on calculations: Approximately

1900 words

I) Based on the calculations carry out an in-depth analysis explaining

a) Importance of BEP in decision making.
b) Impact of capacity on the cost and profitability.
c) Impact on the profitability of the company if the product is bought and
sold.
d) Impact on the profitability of the company under given constraints.
e) Impact on the profitability of the company, keeping in mind the
constraints and buying option for the balance required to fulfill the
demand.

II) Discuss the qualitative factors that should be considered if the company
decides to outsource the products.
III) Advice the management how to tackle current issues, if it continues to
remain in the long run.

IV) Conclusion: Approximately 200 words

The assignment must conclude with a proposal to the company, taken after
thorough analysis of all factors stated above.