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aleksandr82 [10.1K]
2 years ago
12

why do companies have middle management instead of just having senior management that retains all power in the organization?

Business
1 answer:
lions [1.4K]2 years ago
4 0

Answer:

Small companies don't have middle management, so it is entirely appropriate for senior management to implement strategy and guide employees directly.

The purpose of management is nothing to do with power, but rather to create, plan and execute the vision and strategy of the organization through the workforce and technology.

Explanation:

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Hodgkiss mfg., inc., is currently operating at only 94 percent of fixed asset capacity. current sales are $740,000. how fast can
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Sales grow before any new fixed assets are needed is $156,480.

Fixed assets , additionally known as lengthy-lived assets or property, plant, and equipment, are a time period utilized in accounting for belongings and belongings that cannot without difficulty be converted into cash. fixed properties are one of a kind from modern assets, along with coins or bank accounts, due to the fact the latter is liquid belongings.

currently operating = 94 percent

current sales = $740,000

Full capacity sales = current sales/ Current capacity utilisation

                               = 500000/0.94

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Percentage of fixed assets to full Capacity Sales = Fixed Assets / full Capacity Sales

                                                                                 = 400000/531914.89

                                                                                 = 0.752

Total Fixed assets Needed for New Sales = 74000*0.752

                                                                      = 556480

Additional Fixed Assets needed = 556480 - 400000

                                                      = $156,480   answer.

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