Question
Your team runs a consulting firm, and the following are scenarios being considered by three separate clients: Company 1 sells three types of bicycles (racers,
Your team runs a consulting firm, and the following are scenarios being considered by three separate clients:
Company 1 sells three types of bicycles (racers, cruisers, and climbers), all of which are profitable. The company faces a labor-hour bottleneck and plans to eliminate the cruiser product because it has the lowest contribution margin per labor hour.
Company 2 plans to accept a special order at a reduced price from a one-time customer.
Company 3, a maker of car batteries, plans to eliminate one of its unprofitable product lines
Each team member must identify a qualitative factor that should be considered for each scenario. As a group, identify 2 other options for each scenario. These options can be performing calculations or offering an alternate course of action.
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