week before delivery, the customer indicated that it could only take 600 of the 800 items. Because of the long-standing relationship MFMI decided to accept this revised arrangement and mandate the sales team to sell the remaining 200 items in the market for at least $7000 per item. At the end of the period the sales team reported to management that they have identified buyers who were willing to purchase the 200 items at a rate of $6100 per item and at the management’s preferred price only 140 of the 200 would be sold. Give Evidence-based / calulations on recommendations on whether to overhaul/retool the factory and continue in operations, do not retool but continue operating or the sell the company and exit the industry

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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week before delivery, the customer indicated that it could only take 600 of the 800 items. Because of the long-standing relationship MFMI decided to accept this revised arrangement and mandate the sales team to sell the remaining 200 items in the market for at least $7000 per item. At the end of the period the sales team reported to management that they have identified buyers who were willing to purchase the 200 items at a rate of $6100 per item and at the management’s preferred price only 140 of the 200 would be sold.

Give Evidence-based / calulations on recommendations on whether to overhaul/retool the factory and continue in operations, do not retool but continue operating or the sell the company and exit the industry.

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