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Directions: For each situation, select one option you think will help increase profit. Put the letter
of your choice in the blank. Below each answer, write your rationale. When you have
finished, ask your instructor for a copy of the answer guide to verify your responses.
A. Avoid extra payroll expenses.
B. Get the best rates on advertising.
C. Change the product you provide.
D. Use resources wisely.
E. Beat the competition.
F. Get the best rates on supplier purchases.
G. Eliminate some free services.
H. Increase worker efficiency.
___ 1. A shop that sells fine glassware offers gift wrapping at no extra cost.
Rationale:
___ 2. Two stores sell the same video game at the same price.
Rationale:
___ 3. There are 12 places to buy the yarn needed for a knitting factory.
Rationale:
___ 4. Employees at a printing company do not have a system for completing their tasks quickly
and accurately.
Rationale:
___ 5. At a sign-making company, the extra metal is discarded.
Rationale: