Production and Cost Analysis in the Fast-Food Industry (Page 145, one page Case Study) The...

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Production and Cost Analysis in the Fast-Food Industry   (Page 145, one page Case Study)    The Questions    1) What are the options for the fast food industry to increase their profits?    2) Give examples from the case study to support your answer in 1)        The iPhone in China  (Page 173, one page Case Study)    The Questions    1) Why do you think IPhone moved to China?        General lessons from comparing the two cases    1) Regarding the main lessons from both Cases, what are the differences and similarities between the two cases?

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Production and Cost Analysis in the Fast-Food Industry  
(Page 145, one page Case Study)
 The Questions
1) What are the options for the fast food industry to increase their 
profits? 
Answer – The options for the fast food industry is to change their 
scale of production from small scale to large scale so that there is fall 
in average cost of production. Moreover, the customer base should 
be increased by introducing more schemes and discounts which will 
increase the revenue of the company in the long run. Since the cost of 
production is directly related to the type of technology used, 
therefore more of capital intensive technology would enhance the 
quality of production and will reduce the time required for delivery 
of goods to the consumers. Overall profits can be increased by 
reducing the variable cost of production because opening more of 
drive-through windows would require higher initial fixed cost of 
production but the daily operating expenses can be reduced by 
changing the infrastructure style of such set up like reduction in 
number of employees when there will be less number of call centers. 
It should be noted that only increasing the profits through reduction 
in monetary cost is not the necessary condition as non-monetary 
costs are also the part of overall cost of production.

Production and Cost Analysis in the Fast-Food Industry (Page 145, one page Case Study) The Questions 1) What are the options for the fast food industry to increase their profits? 2) Give examples from...

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