(15 marks) Question 2 A package delivery company has seen a signicant increase in demand. In the attempt to satisfy the increased demand, the company management feels that they are being inefcient. They have found themselves paying ad hoc overtime, hiring additional bikes/vans a short notice, having to outsource different tasks/orders/business functions etc. They also have a small working team conducting various roles but with the increased orders some mistakes are being made resulting in additional costs to rectify issues (e.g. compensation, hiring short notice support etc.). They have a rather basic information system and mainly use spread sheets (MS Excel) for most operating functions. The company feel that they are in a position where they need to plan for the future and hire you as a consultant to consider means in which they can reduce average costs in the long run so that they can efciently keep up with demand. Using your knowledge of economies of scale and diseconomies of scale consider means in which the company can reduce average costs over the long run. (N.B you should use diagrams to support your answer, you do not need to consider actual costs but you should consider initiatives that would aid reducing average costs over the long run)