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Q1) Poor decision making may result when acceptable prices are determined by adding a fixed percentage to the "full cost" of a product when that "full cost" includes a unitized fixed cost. The lesson in the module is that any selling price above the contribution margin will add to the wealth of the firm. This being the case, is there a danger in the decision rule that states "always accept any offer that has a positive contribution margin?" Please expand on your explanation by giving examples.
Also, what about the issue of capacity? Does it have any impact on the above decision making process if a company operates at full capacity or have idle capacity?
Why is it sometimes important to allocate overhead costs among products, services or some other grouping? Other times the allocations should be disregarded as in this case - why?
What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?
Critically analyze Dan's friend's advice. Point out the relevant aspects as well as any judgments in the advice.
Do you think that leaders can display more than one style?
Read Leadership in Complex Organizations - Russ Marion. What is the main purpose of the article?
What responsibilities does corporation have to its community, to its workforce, and to its investors?
Which product makes the largest contribution to company profit, given a capacity constraint measured in terms of production time?
Objective questions on International Business Management.
Cost to buy the part from Steelers Company - $42 per unit. In deciding whether to make or buy the part, Rams' total relevant costs to make the part are?
Detailed case study on a subject that deals with Business law and risk management.
What is required to transform a "good" company into a "great" company? In other words, what do you think is the single most important ingredient?
WCX, Inc. is considering the replacement of its old stamping machine with a new one. The old machine was purchased 3 years ago for $62,000 and was expected to last for 8 years.
What are some of the benefits and drawbacks to each particular style? Task vs Person Leadership, Transactional vs Transformational Leadership.
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