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Montano1993 [528]
3 years ago
9

Jeanine, the operations manager of an auto dealership, has been redesigning operations. She feels there are many places where th

e dealership can cut costs to save money. One of these is all the "perks" for customers like free coffee, freshly popped popcorn, and a children’s play area. Assume you are the general manager of the dealership (Jeanine’s boss) and an advocate of the planning/control cycle, what would you do?
Business
2 answers:
Pachacha [2.7K]3 years ago
4 0

Answer: If i am the general manager of the organization i will try to make a survey about customer relation in other competitive organization before i can conclude whether it is wise to cut down cost through removing giving out free gifts to customers like the free pop corn, coffee etc. Customers will choose other organizations where they can get the same quality service and other benefits especially in a perfectly competitive market. Rather i will suggest more profit can be made by slightly increasing the cost of services rendered to customers from which the cost of the freebies can be regained.

Explanation:Customer's satisfaction and profit maximization are the two main objectives of a firm. It is only when an organization is able to maintain good customer relationship with their customers that profit can be maximized regardless of how efficient their other services are.

Ulleksa [173]3 years ago
3 0

Answer:

In conclusion, I would not approve Jeanine to cut customer-related costs that create customer experiences that are key to earning revenue

Explanation:

There are certain reasons that should guide cost cutting or reduction.

1. Cost Reduction should involve reducing and not cutting entirely the costs

2. The reduction should not affect the processes and product quality

3. The process of manufacturing may be improvised without affecting the  product quality or nature

4. Features of the product or service may be modified without affecting the quality of the product.

Hence, the innovative ways that would be ideal for cost reduction or cutting would be meaningful ways that would not compromise the quality of customer experience and most probably impact revenue; such as:

1. Sourcing modifications : Better offers or higher discounts on raw material purchases

2) Improvising processes : Looking through the value-chain and eliminating duplicated processes leading to improved efficiency

3) Energy saving equipment : Switching to leasing energy-saving or fuel efficient machines

4) Hiring processes : Improving negotiation at on boarding of new staff.

In conclusion, I would not approve Jeanine to cut customer-related costs that create customer experiences that are key to earning revenue

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What term describes the relationship between real gdp per hour worked and capital per hour​ worked, holding the level of technol
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The per-worker production function describes the relationship between real gdp per hour worked and capital per hour​ worked, holding the level of technology​ constant

3 0
3 years ago
George Kaplan is considering adding a new crop-dusting plane to his fleet at North Corn Corner, Inc. The new plane will cost $85
Yuri [45]

Answer:

The correct answer is $105,000.

Explanation:

According to the scenario, the given data are as follows:

Cost of the plane = $85,000

Modification cost = $20,000

So, we can calculate the net cost of the plane by using following formula:

Net cost of the Plane = Cost of the plane + Modification cost

By putting the value, we get

Net cost of the plane = $85,000 + $20,000

= $105,000

7 0
3 years ago
Calculator Santorino Company produces two models of a component, Model K-3 and Model P-4. The unit contribution margin for Model
Maru [420]

Answer and Explanation:

1. 5,000

2. 5,500

Working;

Machine Hour available : 4,000

Product P-4 Has higher contribution margin, so it must be produced maximum.

Maximum demand for Product P-4 = 5,500 Units

Time required by each Unit = 30 Min.

Total Hours required for 5,500 Units, 5500 / 2 = 2,750 Hours

Remaning hours will be alloted to K-3.

Each unit of K-3 require 15 Min. , So total of 4 Units in an hour.

Total units produced = 1,250 x 4 = 5,000 Units.

3 0
3 years ago
The balance of the allowance for doubtful accounts account at january 1 of the current year was $6,800 credit. during the year,
LUCKY_DIMON [66]
The balance of the Allowance for Doubtful Accounts account to be reported on the balance sheet at year-end is<span>
Ending balance for Allowance for Doubtful Accounts = beginning balance for Allowance for Doubtful Accounts ($6,800 credit) - current year write-offs ($9,000 debit) + current year estimated Uncollectible Accounts Expense ($7,200 credit).</span>
4 0
3 years ago
Central Perk orders their organic coffee filters from a South American supplier that mails them as inexpensively (hence, as slow
katovenus [111]

Answer:

1,360 filters

Explanation:

To avoid the material / inventory shortage a company calculates the a level of inventory at which a new order will be placed. It consider the lead time to deliver an order.

Daily usage = 80 filters

Delivery lead time = 14 days

Reorder Point formula = ( Daily usage x Lead time ) + Safety Stock

We need safety stock to calculate the reorder level. Safety stock is the level of inventory which is maintained to eliminate the risk of stock out of inventory.

Safety stock = (Maximum daily usage x Maximum lead time in days) – (Average daily usage x Average lead time in days).

Safety stock = ( (80+5) filters x (14+2) days ) – ( 80 filters x 14 days )

Safety stock = 1,360 filters - 1,120 filters = 240 filters

Placing values in Reorder point formula

Reorder Point formula = ( 80 x 14 ) + 240 = 1360 filters

4 0
3 years ago
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