Budgets and managing money presentation 1.11

Directing the Peerless Data Corporation

Task Explanation


Location B is the best choice because it:•Meets your staff commute needs•Solves your space problem for three and five years•Gives you more flexibility (can move after three years)

Decision One


Scoring

Decision One

If you chose... You get this profit…

A $1,000

B $20,000

C $0

D $10,000


• Transfax must be eliminated because it has insufficient copy capacity.

• The Flocopy model not only costs less to own or lease; you will also save copying costs per year.

• Based on this analysis, your decision should be Flocopy.

Decision Two


Scoring

Decision Two


Transfax $1,000

Flocopy $20,000

Reprodata $6,000


• Hiring locally bears the most risk and can be eliminated quickly as a viable decision.

• In our analysis, the best answer is Peter Hunt.

• The disadvantages in hiring Peter Hunt are inconvenient, but not serious problems.

Decision Three


Scoring

Decision Three


Peter Hunt $20,000

Brad Matters $10,000

Hire locally $2,000


• The consultant will get your production up to the desired level more quickly than the other two methods.

• It will also generate $9,000 in revenue, more than enough to cover the consulting fee.

• Another factor to consider is expertise that it would bring to the job.

Decision Four


Scoring

Decision Four


Peter Hunt $0

Home Office $14,000

Consulting firm $20,000


• Something’s missing in our analysis!• No data is available for the two

secretaries.• Delay the decision when essential

information is lacking.

Decision Five


Scoring

Decision Five

If you chose to add... You get this profit…

One programmer $20,000

One programmer and one expediter $10,000

Any other staffers $0

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