eco/561 week 3 Cost Scenario

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Resource: University of Phoenix Material: San Juan Cell Phones
Read the San Juan Cell Phones material. Consider whether to accept an order for a product that requires displacing another product from production. This decision employs contribution analysis, opportunity cost, and cost concepts. Base your decision on the University of Phoenix Material: San Juan Cell Phones, which provides a problem statement, opportunities, and end-state goals. Write a report of no more than 1,050 words that explains the following in the context of the scenario: Identify and describe each of the costs of production at San Juan Cell Phones, and explain how they differ from one another. Identify alternative solutions to meet the end-state goals. Analyze and evaluate the alternatives that you identified, using incremental cost and contribution analysis. Perform risk analysis to identify potential risks and negative consequences of the alternative solution. Make a recommendation of the best alternative solution and explain how it best meets the desired end state.

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