Question: Keep the Highest / 1 RENTALS 6 . Individual Problems 2 2 - 6 QXCOURSESAn aircraft engineering company has three divisions: ( 1 ) The
Keep the HighestRENTALS Individual Problems QXCOURSESAn aircraft engineering company has three divisions: The engineering division designs engines for jet airplanes; The production division manufactures the engine; The finance division determines what price to charge for the engine. The engineering division designed a radical new engine that won award and had a lot of technical improvements. However, when the finance division calculated the marginal cost, they found that the production costs of the engine were much higher than that of rival engines and the operating costs incurred by any potential customers would be higher even though the new engine used less fuel. No one purchased the engine.Study ToolsIf you were to make a recommendation of the firm, then which of the following would you suggest to ensure that this problem does not occur in the future?College Success TipsThe firm can give veto power to the manufacturing division.O The firm can reorganize the three divisions into one, singular division that performs all the tasks necessary to serve customers of a particular product.Career Success TipsThe firm can reward the managers of the financial division by giving them commissions on sales.
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