OVERVIEW This is an excellent bypass font to cover basic concepts in toll analysis for cost control and autobusial decisions. The case ever works well for me in class. Perhaps this is because the unknown industriousness context is intriguing to students who enjoy thinking nearly fear issues in strange settings. Also, the topics covered take over gamey ordinary sense appeal. If students have not thought practically virtually these issues before, this case is seen as very relevant refreshed stuff. If they have studied these issues before, the case is seen as solid review word in a fun business setting. ASSIGNMENT In addition to the cardinal questions in the case, I assign the adjacent question: view good deal paper from scrap dealers is change for $.015 per pound much than the price being offered at the onus dock for routine paper. Should management be emphasizing bulk purchases or day-to-day purchases? What exactly can management do in the short run to change the product emphasis? ANSWERS TO ASSIGNMENT QUESTIONS Question 1 (and Question 5) I proceed the discussion of question 1 by asking a student to comment on the category charabancs comment that it isnt workable for per-unit costs to be salary increase for both products when total glitz is rising and total cost is falling. Is at that place a logical impossibility here?
The answer is no, however I believe it is useful for students to see why. The subdivision manager is on the hot seat because unit costs ar rising and the president sees this as poor cost control. If the manifest per-unit cost increases a re a logical fallacy, then the division mana! ger is off the hook pretty easily. In class, I apply the following textbook introductory economics example of a situation where, for two products, total cost is declining, total pot is increasing, but unit... If you want to get a full essay, cast off it on our website:
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