You work for a division of a textbook publisher that manages the company\'s econ
ID: 1255125 • Letter: Y
Question
You work for a division of a textbook publisher that manages the company's economics textbooks. Senior managers have instructed you to find a way to reduce your division's total cost by 30 percent. Currently, your division handles three principles textbooks that are purchased by thousand of students every year and 25 textbooks in specialized areas of advanced economics, each of which is purchased by a few hundred students per year. If you only objective is to reduce total costs as requested by senior management, would you recommend that your division stop publishing one or more principles books, one or more specialized books, or a mix of the two responses or are there other ways of researching management's goals?Explanation / Answer
According to the situation to reduce the division total cost we will either stop publishing specialized books or principal textbooks but from the management point of view to stop publishing specialized books is not a wise idea since these are specialized books so its obvious that their cost is higher compared to that of the principal textbooks so we should publish less principal textbooks .Since the amount of specialized books is less (few hundred per year )but still they are very important for incresing your margin.
Other way may be to increase the sale then only the profit will increase and the division total cost will automatically gets reduced.
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