Business Decision Making: Cost Analysis, Order Projections & Strategy

This report provides an analysis of business decision-making within a chocolate company context, focusing on cost analysis, order projections, and investment appraisal. Through graphical presentations, it highlights the increasing demand for chocolate products and the importance of catering to diverse consumer preferences. The report includes a critical path analysis to optimize production timelines and recommends investing in a proposed project based on its positive net present value and internal rate of return. It emphasizes that while increasing production through new flavors will raise total costs, it will also lead to a rise in order numbers. Students can find similar solved assignments and past papers on Desklib.

Business Decision
Making
TASK 3

Producing Column and bar graphs
for total cost and total hour’s

Line graph of total cost

Line graph of number of
orders

Interpretation
 Through the means of graphical presentation it has been
evaluated that looking at the increasing demand of chocolate
products cited firm will generate high number of orders in coming
months.
 Further, different people have different choices about the flavors
thus it is important to owner to consider the taste and
preferences of people and accordingly make decision regarding
launch of new flavored Cadbury.
 Trend line clearly indicates that as the production level company
increases through the introduction of new flavor Cadbury its total
costs will also increase but at the same time number of orders
will also increase.

Critical Path
Critical path Critical path
duration
Number of days
1+4+6+7+8 9+5+10+4+7 35 days
1+4+6+8 9+5+10+7 31 days

Recommendation
 On the basis of computation of investment appraisal techniques
it has been evaluated that, entrepreneur of Mortimer Chocolate
Company should invest in available proposal as it is showing
reliable results for the future contingency.
 Rationale behind this is that, net present value of proposal is
showing positive and high result of 61.375 whereas internal rate
of return of 11% indicates suitability of this project in investing.

References
 Berenson, M. and et.al., 2012. Basic business statistics: Concepts and
applications. Pearson Higher Education AU.
 Black, K., 2011. Business statistics: for contemporary decision making.
John Wiley & Sons.
 Day, A., 2005. Mastering Financial Mathematics with Excel: A Practical
Guide for Business Calculations. Financial Times/Prentice Hall.
 Ho, J. C. L., Liu, S. C. and Tsay, J., 2008. "Further evidence on financial
analysts' reaction to enterprise resource planning implementation
announcements". Review of Accounting and Finance. 7(3) pp. 213 –
235.
 Loe, T.W., Ferrell, L. and Mansfield, P., 2013. A review of empirical
studies assessing ethical decision making in business. In Citation
Classics from the Journal of Business Ethics. Springer Netherlands.