Management of Bluebird Manufacturing is considering whether to drop a product line
So far, management has determined that the product has a negative contribution margin and that lost revenues are less than the total cost savings. In making the final decision, what are other questions that the management of Bluebird should consider?
What will be an ideal response
Would dropping the product affect other product sales?
Would Bluebird lose customers who want this product as part of one-stop shopping?
What will Bluebird do with the freed manufacturing capacity?
What total costs-variable and fixed-will change?
Are there additional environmental costs that should be considered?
Should Bluebird consider outsourcing the production of this product?
You might also like to view...
All of the following complicate the implementation of an international diversification strategy EXCEPT:
A. widespread multilingualism. B. increased costs of coordination between business units. C. cultural diversity. D. logistical costs.
Based on the service-quality model, researchers have identified five determinants of service quality. List and briefly explain each
What will be an ideal response?
Railroads were once operated based on the thinking that users wanted trains that would offer the most in quality, performance, and innovative features. The railroad managing companies overlooked the fact that there could be other modes of transportation. This reflects the ________ concept.
A) product B) production C) selling D) marketing E) societal marketing
Fast food restaurants pride themselves in being able to fill orders quickly. A study was done at a local fast food restaurant to determine how long it took customers to receive their order at the drive-thru. It was discovered that the time it takes for orders to be filled is exponentially distributed with a mean of 1.5 minutes. What is the probability that it takes less than one minute to fill an order?
A. 0.1813 B. 0.4866 C. 0.6321 D. 0.7769