12. Donut Ville caters to its retirement population by selling over 10,000 donut

Question

12. Donut Ville caters to its retirement population by selling over 10,000 donuts each week. To produce that many donuts weekly, DonutVille uses 1,000 pounds of flour, which must be delivered by 5:00AM every Friday morning. How should the manager of DonutVille acquire flour? Explain.

18. Teletronics reported record profits of $100,000 last year and is on track to exceed those profits this year. Teletronics competes in a very competitive market where many of the firms are merging in an attempt to gain competitive advantages. Currently, the company’s top manager is compensated with a fixed salary that does not include any performance bonuses. Explain why this manager might nonetheless have a strong incentive to maximize the firm’s profits.

Explanation / Answer

12. Have multiple vendors compete and choose the cheapest/best one. Then have them deliver Thursday to ensure that you can hire second place if they fail you. 18. If they aren't successful, the company might merge and he might take a pay cut or be out of his job. Also the fact if he merges good performance = more pay.

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