Answered: A- Which one of the following actions…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Question

A- Which one of the following actions is guaranteed to result in lower labor costs per pair produced at one of your company's production facilities?

Reducing the S/Q rating of branded pairs produced for 4.6 stars to 4.1 stars
Increasing the base wage paid to production workers by at least 3% annually
Increasing total employee compensation by 4% and realizing a 6% increase in production worker productivity
Increasing spending for TQM/Six Sigma quality control from $3 per pair to $5 per pair
Increasing total expenditures for best practices training by 10% annually

B- Which one of the following helps increase the S/Q rating of branded pairs produced at a particular production location?

Increasing expenditures for enhanced styling/features
Increasing the incentive pay for production workers, and thereby reduce reject rates on pairs produced
Increasing efforts to improve the productivity of production workers
Maximizing the use of overtime at each production location
Avoiding bidding for contracts to supply private-label footwear to chain retailers, which damages the company's image as a producer of top quality footwear

C- The branded operating benchmarking data on p. 7 of each issue of the Footwear Industry Report showing the industry-low, industry-average, and industry-high values for operating profit per branded pair sold in each geographic region.

are of considerable value to the managers of companies looking for strong evidence that their company needs to cut branded footwear prices in the internet and wholesale segments and/or spend more money on marketing efforts so as to increase branded sales and market share in one or more geographic regions.
have little-decision-making value because the benchmarking data do not identify which companies have the lowest/highest operating profit margins per branded pair sold.
always merit close attention because when these benchmarks reveal that a company's operating profits are negative or unattractively small in one or more geographic regions, managers are well-advised to pursue immediate corrective actions in the upcoming decision round.
are most valuable to the managers of companies whose ROE was well below the reported ROE industry-average benchmark in one or more regions.
have the greatest value to the managers of companies whose market share outcomes were below the reported industry-average benchmark for market share in one or more geographic regions.

Definition Definition Financial market that deals in securities or assets that are short-term in nature. The money market is responsible for keeping up the liquidity of the businesses and the organizations. These securities are usually held for a period of 12 months or less and are issued by institutions that require cash or funds for their short-term cash flow requirements. The money market is regulated by the federal government.

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