Extra Practice - Business Decision Making - ثاني ثانوي

414 11 Chapter رة ا Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 414 Extra Practice Critical Thinking Questions 1. Making footballs and basketballs yields different profit margins for the busi- nesses. Should the company stop making the lower performing product? Give reasons for and against, and explain your decision. 2. The sports equipment business can only have a maximum of 1,000 hours of downtime per year if it is still to meet its production targets. List as many reasons that the business needs to have downtime as you can think of. Which is the most important, and why? 3. In Lesson 2, we learned that the clothing business produced button-down shirts and T-shirts because it wanted to be known as a "balanced shirt maker." Thinking about your answer to question 1, why do you think this balance is important for the business? 30/06/2023 14:28

وزارة التعليم Ministry of Education 2024-1446 Business Decision Making S1 S2 S3.indb 415 Team Challenge The profit margins for the footballs and basketballs are different. In the example, we are told that this is because they have different selling prices, different mate- rials, and different inputs. Discuss the different inputs and materials needed to produce footballs and bas- ketballs. Consider the materials, labor, and machinery that might be used. Decide among your group which inputs and materials have the biggest impact on the selling price. When you have listed all of the inputs and materials you can think of, rank them in order of the impact you think they will have on the selling price. Be the Critic 1. Many other businesses produce footballs and basketballs, often for different selling prices. Answer in detail why another company might be able to sell their products for higher prices, focusing only on the product itself. 2. Some companies will produce footballs and basketballs using the same or similar inputs and materials. The cost to produce the products may also be very similar. However, some of these companies will charge much more money for the products, and many of their customers will be happy to pay these higher prices. Why? Try to think of three possible reasons and write a short essay explaining each one. You may want to think about your own decision-making processes when shopping to help you. Using Microsoft Excel Solver 415 30/06/2023 14:28