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  • Avalanche Corporation case study - Should they accept the weather forecast proposal

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    Ankit Sutariya
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    Avalanche Corporation is considering whether to accept a proposal from a consulting firm called Fantastic Forecasters to predict weather conditions. By analyzing the net income across six possible production cases with different probabilities, producing 15,000 units of their Avalanche Racer would be most profitable. However, paying fees to the consulting firm would reduce profits. The recommendation is that Avalanche Corporation should not accept the proposal from Fantastic Forecasters as it would not be a financially beneficial decision.

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    Avalanche Corporation is considering whether to accept a proposal from a consulting firm called Fantastic Forecasters to predict weather conditions. By analyzing the net income across six possible production cases with different probabilities, producing 15,000 units of their Avalanche Racer would be most profitable. However, paying fees to the consulting firm would reduce profits. The recommendation is that Avalanche Corporation should not accept the proposal from Fantastic Forecasters as it would not be a financially beneficial decision.

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    45 views2 pages

    Avalanche Corporation case study - Should they accept the weather forecast proposal

    Uploaded by

    Ankit Sutariya
    Avalanche Corporation is considering whether to accept a proposal from a consulting firm called Fantastic Forecasters to predict weather conditions. By analyzing the net income across six possible production cases with different probabilities, producing 15,000 units of their Avalanche Racer would be most profitable. However, paying fees to the consulting firm would reduce profits. The recommendation is that Avalanche Corporation should not accept the proposal from Fantastic Forecasters as it would not be a financially beneficial decision.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    Avalanche Corporation case study

    Submitted by : Group 11 Ankit Sutariya Samarjyoti das Hithesh

    Should Curtis Jackson accept the proposal from a consulting firm, fantastic forecasters for predicting weather conditions OR not ?

    Case analysis

    *By calculating the net income in each six possible case, attaching the probability of selling to it, it seems that it would be better to produce 15000 units of Avalanche Racer

    As it would have to pay fees also to the consulting firm which will eat up existing share of profit.

    Recommendation

    Continue..

    *The breakeven volume would be 28333 units combining both the process

    Using all data of weather condition, Avalanche corporation can not increase the net income

    Avalanche Corporation should NOT accept the proposal from Fantastic Forecasters as it would be not financially good decision for them.

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