Sportway, Inc. Sportway, Inc., is a wholesale distributor supplying a wide range of moderately priced sporting equipment to large chain stores. About…
Please note: I require ALL work to be demonstrated, please do not assume anything. I need an explanation, formula, or cell references to be provided. If not, I will NOT accept answers as correct, If I can’t reach the exact same conclusion as you. Note: This is NOT an easy problem, it will require unit contribution AND analysis of Direct Labor. If the analysis of Direct Labor is not done, I will NOT accept your answer.
1) Prepare an analysis based on the data presented that will show which product or products Sportway, Inc., should manufacture and/or purchase in order to maximize the company’s profitability. It should also show the associated financial impact. Support your answer with appropriate calculations.
2) Discuss some qualitative factors that might affect Sportway’s decision.