Ronald's Has Been in the Fast Food Business for Five

question 13

Multiple Choice

Ronald's has been in the fast food business for five years.After struggling for two years, it finally broke even, and the french fries it offers are its most popular product.However, during the past year, its business has suffered because the farm that used to supply it with potatoes has increased its prices drastically.What should Ronald's do to control its production costs?

• A) Ronald's should reorganize its organizational hierarchy to increase efficiency.
• B) Ronald's should buy out the farm and become its own supplier.
• C) Ronald's should open more distribution outlets.
• D) Ronald's should broaden its product range by introducing potato nuggets on its menu.

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Definitions:

Straight Salary

A compensation structure where employees are paid a fixed amount of money regularly, regardless of performance.

Commission

A form of payment to an employee or agent, typically a percentage of the value of the goods or services they have sold.

Level of Intangibility

The degree to which a product or service lacks physical substance, impacting how it is marketed and perceived by consumers.

Designer Dress

A high-fashion garment created by a renowned fashion designer or fashion house.