Information in Part 1:

Predicted Sales: $450,000

Workforce Consists of 10,000 employees

Cost of current labor force: $300,000

Original plans suggested by Andrew:

Strategy 1: Let go of the entire workforce (strategy 1) the firm sales will drop dramatically but so will the costs as they will now be only 1% of what is forecasted.

Strategy 2: If instead the firm decided to let go of 8,500 employees (strategy 2), its expected costs will remain at 10%

Strategy 3: With only 3,000 employees (strategy 3) the sales will slow down while overall cost will remain around 22.86%.

Plans suggested by Katie:

Plan A: Save no jobs with a decrease in the firm operational costs by 1%

Plan B: Save 1,500 jobs with a decrease in the firm operational costs by 14%

Plan C: Save 3,000 jobs with a decrease in the firm operational costs by 18%

With Plan C being the better option.

After making your decision on part I you were given the following two memo of the current U.S Air Travel between 2020-2022: U.S. air travel Daily travelers passing through TSA checkpoints since March 2020 . Weekly average is shown to account for day-of-week variation. U.S. Airlines Operated Domestic Flights: February 2020-February 2022 Operated = Scheduled Canceled Markering Network Carriers and their Branded Code-Share Partners As we can see the low prices for airlines are disappearing and airlines are no longer offering low prices to fill planes, the same is happening for hotel rates. This in turn affects the sales levels (which remain at $450,000 ) as prices determine the revenue earned for the firm which in this situation implies that the decrease in sales further dropped while costs increased by 1% from the original estimations by Andrew if no employees are employed, by an additional 2% if 8,500 are fired and by an additional 3% if 3,000 remain employed. The predictions suggested by Katie remain the same. Was your decision sound? (Make sure to show the adequate calculations and apply the MB/MC decision making process applied in the first part). After making your decision on part I you were given the following two memo of the current U.S Air Travel between 2020-2022: U.S. air travel Daily travelers passing through TSA checkpoints since March 2020 . Weekly average is shown to account for day-of-week variation. U.S. Airlines Operated Domestic Flights: February 2020-February 2022 Operated = Scheduled Canceled Markering Network Carriers and their Branded Code-Share Partners As we can see the low prices for airlines are disappearing and airlines are no longer offering low prices to fill planes, the same is happening for hotel rates. This in turn affects the sales levels (which remain at $450,000 ) as prices determine the revenue earned for the firm which in this situation implies that the decrease in sales further dropped while costs increased by 1% from the original estimations by Andrew if no employees are employed, by an additional 2% if 8,500 are fired and by an additional 3% if 3,000 remain employed. The predictions suggested by Katie remain the same. Was your decision sound? (Make sure to show the adequate calculations and apply the MB/MC decision making process applied in the first part)