Executive Summary

ABC Company, the manufacturing firm specializes in making cedar roofing and siding shingles. The company is currently producing 80000 units of its current product and trying to find additional products that will lever the current employees' skill and the manufacturing facilities existing in the firm. Currently it has annual sales around 1.2 million dollar and is targeting to reach 3 million dollar sales within the next three years. As the controller of this company I see the CEO is working on a new opportunity to produce cedar dollhouses by using some of the shingle scarp materials. The new production will require additional raw materials and machine hours and will provide leverage and additional revenue and gross profit.

Chapter ONE

Overall Risk Profile

Current...