Financial Department in a medium sized company to determine the feasibility of the company
You are an employee in the Financial Department in a medium sized company. The company must determine the feasibility of the company making an investment in a new product line overseas or keeping in the US.
Sample Answer
Financial Analysis for New Product Line: Domestic vs. Overseas
Introduction:
As part of the Financial Department, we’re tasked with evaluating the feasibility of investing in a new product line, considering both domestic and overseas production options. Here’s a framework for financial analysis to guide our decision:
Cost Analysis:
- Domestic Production:
- Labor costs (wages, benefits)
- Material costs (raw materials, parts)
- Manufacturing overhead (rent, utilities, equipment)
- Transportation costs (within the country)
- Taxes (federal, state, local)