Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Chapter 12 Running Case Assignment: Improving Decision Making: Analyzing the
Impact of Component Price Changes
Software skills: Spreadsheet formulas, two-variable data table
Business skills: Manufacturing bill of materials sensitivity analysis
A bill of materials is used in manufacturing and production to show all of the parts and
materials required to manufacture a specific item or for the subassembly of a finished
product, such as a motorcycle. The information in the bill of materials is useful for
Dirt Bikes’s management has asked you to explore the impact of changes in some of its
parts components on production costs. Review the spreadsheet file containing bill of
materials information for the brake system for Dirt Bikes’s Moto 300 model, which can
be found on the Laudon Web site for this chapter. The completed bill of materials
contains the description of the component, the identification number of each component,
the supplier (source) of the component, the unit cost of each component, the quantity of
each component needed to make each finished brake system, the extended cost of each
