she will have to understand what she is foregoing to purchase a car or visa versa, what she is getting by not purchasing the car.2. Method 2 is the cheapest choice ringing up at $700 compared to $1200, $1000, and $1300 respectively. However, there are other factors to consider such as the time in which these deliveries have to be made. If multiple deliveries need to be made in a short time period to distant locations, it might be wise to hire more drivers to do complete the job. 3. According to Brickley, Smith and Zimmerman, there are three fundamental flaws in the organizational structure of Enron. The first flaw was that “Enron delegated an extraordinary level of decision-making authority to lower-level employees without retaining an appropriate degree of oversight.” (Brickley, Smith and Zimmerman p. 3) The second flawwas the “performance was evaluated largely on near-term earnings growth and success in closing deals.” (Brickley, Smith and Zimmerman p. 3) The final flaw was the fact that “the company offered enormous compensation to its top performers, which encouraged excessive risk taking.” (Brickley, Smith and Zimmerman p. 3)4. Yes, the fixed costs can be ignored when executives are making output and pricing decisions in the short term. These costs can be ignored because these costs are going to be spent no matter what and will remain constant during the operating process. Variable costs should be the focus when looking to maximize profit in the short run. “In the long
