Costs and Decision Making

Review Case 8.32 in your textbook. Using the questions provided as a guide, discuss your recommendation(s) regarding what the company should do about the conference. Support your recommendation(s) with calculations based on the data provided.

Required:

What alternatives are available to Anna and Ethan with regard to holding the conference?

Prepare pro-forma income statements for each of the alternatives you identified in question (a).

Adjust the statements in part (b) by eliminating the unavoidable costs from the calculation to show only the relevant income/loss from each option.

What are the pros and cons of holding the conference as scheduled?

What are the pros and cons of canceling the conference?

What are the pros and cons of rescheduling the conference?

How should Flagstone view this conferenceâ€”in the short term or in the long term?

Please include proper citations in your discussion post. Points will be deducted if proper citations are not used.

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