Please list, in order, the five steps that are used in differential analysis.

Part III

Please select two of the following scenarios and answer the question in each. Be sure to label which scenarios you have chosen and explain your answers. Lets try and see how many relevant answers we can come up with!

1. A diversified food company is considering the closing of its condiment division. What two to three qualitative factors should be considered before discontinuing a division or product line?

2. An automobile manufacturer has decided to allow outside suppliers to bid on all parts necessary to make its vehicles. What two to three qualitative factors should be considered by management in deciding whether or not to turn over the production of a part to an outside supplier?

3. What two to three qualitative factors might you consider when determining whether or not to replace your car?