A. List the changes in your final sensitivity analysis
• During the slow months reduces payments to your vendors 30% during the first quarter and by the second quarter the company should resume regular payments to vendors plus the 20% reduction from the first quarter and third quarter the housing market should rebound
• Create a flexible budget adjusting for activity volume in sales and production
• Rolling budget prepared monthly or quarterly that reflects planning changed going forward usually 12 to 16 months will show the new business strategy , operation plan and the economy
• Reduce direct material price per pound by 5% from $0.50 per pound to $0.475 per pound
• Search and compare new vendor with the current vendors and price
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• Reduce administrative other cost by 12% for the third quarter
2. What does Jordon need to do to implement each change?
• Slow down payments to vendors: This change assumes that the company is able to make relatively small adjustments to slow down the timing of vendor payments.
• Customer pay