1. Set the context for the analysis by providing a SWOT. Give an overview of the global metals industry and its subset, the aluminum industry (external Opportunities and Threats). Also, describe AAW’s current situation (internal Strengths and Weaknesses). (20 marks)

1. Set the context for the analysis by providing a SWOT. Give an overview of the global metals industry and its subset, the aluminum industry (external Opportunities and Threats). Also, describe AAW’s current situation (internal Strengths and Weaknesses). (20 marks)

2. Calculate the projected contribution margin rates for each product order (10 marks)

3. Identify all the potential cash flows associated with each of the two product orders and break them down indicating whether each one is fixed or variable and whether it is a recurring cost or a one-time cost. Create two separate three-column tables to display this information using the following column headings: 1. Name of the cash flow item; 2. Fixed or Variable; 3. Recurring or one-time investments. (10 marks)
4. Perform a quantitative assessment:
a. Prepare an incremental analysis for each of the two customer orders, including the incremental cash inflows and outflows from operations for each order.
b. b) determine the return on investment and the payback period in years for each scenario based on your calculations.
(20 marks for each order x 2 = 40 marks)

5. Based on your answers to the previous questions, provide your recommendation along with a justification regarding which order AAW should accept. (20 marks)

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