Question: 10 pts D Question 7 Tommy Bumbles is a new manager at a logistics company, overseeing a division that provides local delivery services to business
10 pts D Question 7 Tommy Bumbles is a new manager at a logistics company, overseeing a division that provides local delivery services to business clients. Tommy believes that his primary goal is maximize profits ASAP so he has developed a plan to reduce costs and increase profits by $60,000. His division normally spends $20,000 per year on annual maintenance and servicing for the company's delivery vehicles, so Tommy plans to just stop spending that money, and then: Boom! easy $60,000 profit over the next 3 years. a. Assume this plan does actually increase profits in the short run because the vehicles have been well-maintained up until now. What is Tommy ignoring? How might this plan affect profitability in the long run? b. Give Tommy some advice about how to decide whether or not to follow through with his plan. His current framework is "Get that profit now!" What is a better framework for evaluating potential business decisions
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