ISM Supply Management Integration INTE Question # 45 Topic 5 Discussion
INTE Exam Topic 5 Question 45 Discussion:
Question #: 45
Topic #: 5
A company introduces a new product line. Although the line is selling well, profit margins are barely at the break-even point. In this situation, which of the following is MOST likely to improve profit margins’
A.
Conduct an analysis of all cost factors, including labor and overhead, to identify possible savings
B.
Determine whether in-house production of the components would be more economical
C.
Negotiate more favorable pricing with suppliers, using the promise of future business if the new line succeeds
D.
Research prices for similar products in the marketplace to determine if the company can raise its prices
Analyzing cost factors such as labor and overhead can reveal opportunities for efficiency improvements and cost reductions, directly impacting profit margins. This comprehensive approach helps identify areas where expenses can be trimmed without affecting product quality.
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