• Unit 5: Differential Analysis

    In this unit we examine how manufacturers decide whether to outsource elements of their operation, a decision process that requires making a differential analysis to determine the revenues and costs for alternative courses of action. As you work through this unit, notice you will use the contribution margin income statement format. We will examine a relatively simple and more complex examples to establish the format used to perform differential analysis.

    Completing this unit should take you approximately 4 hours.