Around 2008--2009, oil prices shot up to above $200 dollars a barrel from $75 a barrel. Shipping rates go up as gasoline price increases. A company that has plants and warehouses in the U. S. and Mexico wanted to re-evaluate its logistic/supply chain network which was conducted in 2002. Which of the following will be the most likely changes to their network in order to reduce total logistics costs? Group of answer choices They would need to increase the number of warehouses to lower transportation costs. They should reduce the number of warehouses so to tap in economies of scale They should improve the throughput rate of their warehouses/distribution centers Do nothing because oil price changes daily; the managers should not make a big fuss about it.

Magic realm, inc., has developed a new fantasy board game. the company sold 15,000 games last year at a selling price of $20 per game. fixed expenses associated with the game total $182,000 per year, and variable expenses are $6 per game. production of the game is entrusted to a printing contractor. variable expenses consist mostly of payments to this contractor. required: 1-a. prepare a contribution format income statement for the game last year.1-b. compute the degree of operating leverage.2. management is confident that the company can sell 58,880 games next year (an increase of 12,880 games, or 28%, over last year). given this assumption: a. what is the expected percentage increase in net operating income for next year? b. what is the expected amount of net operating income for next year? (do not prepare an income statement; use the degree of operating leverage to compute your answer.)