Ronald's has been in the fast food business for five years. After struggling for two years, it finally broke even, and the french fries it offers are its most popular product. However, during the past year, its business has suffered because the farm that used to supply it with potatoes has increased its prices drastically. What should Ronald's do to control its production costs?
A. Ronald's should reorganize its organizational hierarchy to increase efficiency.
B. Ronald's should buy out the farm and become its own supplier.
C. Ronald's should open more distribution outlets.
D. Ronald's should broaden its product range by introducing potato nuggets on its menu.
Answer: B
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