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Answer:
If linen department is dropped operating income of the company will decrease.
Explanation:
That is because the cotrollable margin of the department is positive:
controllable margin = contribution margin - controllable fixed costs
$605,000-($800,000-380,000) = 185,000
That means that the Linen department helps to reduced fixed cost that are not generated by this department and that will keep existing wether the department is closed or not.
In addittion the Hardware department will loose 19% of its sales if the Linen department is closed. Thus will result in a reduction of the cntribution margin of the hardware deparment too.
A manager, making decisions in real-life situations, strikes a balance between these ways to make quick but correct decisions based on systemic organizational vision and conceptual skills.
The manager's experience will help him to make decisions using rational and normative ways, and thus analyze what is the best strategy for effective decision making.
Conceptual skills refer to the manager's systemic view, which understands the organization as an integrated system and must involve a set of thoughts, processing and planning to improve the business.
Therefore, decision making must be taken in a rational and normative way according to the context of the situation that requires a decision, and it is up to the manager to use the best tool to make a decision aligned with the company's objectives and goals.
Learn more here:
brainly.com/question/4382381
Answer: (A) Establishing alliances
Explanation:
Alliances is one of the type of business strategy which is used in for maintaining the relationship between the people, states and the group.
The main purpose of alliances is that it helps in balancing the power and also creating the separate business entity in an organization. It is also known as the type of agreement between the people that helps in binding all the joint venture in business.
According to the given question, the above given situation is an example of obtain the competitive advantage by establishing the alliances.
Therefore, Option (A) is correct answer.
