Outperformance, Inc is bankrupt so we need to find a new company to discuss for this week (sign of the times!). Let's try Zilliant. After reviewing the website and reading about the company's products and successes, answer the following:
Why would a company change its product mix rather than just produce and sell more of everything?
How do you think Outperformance software determines how to change the product mix to generate more profits?
How do you think the software determines how much profit could be made by solving specific production problems?
Also:
Are variable costs relevant and fixed costs are irrelevant for relevant decision making? Why? Give an illustration to support your response.