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What are the financial and non-financial risks

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Question - Due to labour shortages, costs of production have increased significantly. To improve profits, a CEO considers increasing sales revenues and/or reducing costs of sale.

He has some options:

1. Switch to less expensive suppliers for some of their components and at the same time, buy from these new suppliers in large quantities to take full advantage of all trade discounts

2. Increasing average selling prices

3. Imposing minimum order requirements for both existing and new customers.

Required - What are the financial and non-financial risks and rewards associated with each of the changes proposed?

Reference no: EM133189114

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