Group Activity: Qualitative Factors. Each of the following scenarios is being considered at three separate companies.

1. A company sells three types of bicycles (racers, cruisers, and climbers), all of which are profitable. The company faces a labor-hour bottleneck and plans to eliminate the cruiser product because it has the lowest contribution margin per labor hour.

2. A company plans to accept a special order at a reduced price from a onetime customer.

3. A maker of car batteries plans to eliminate one of its unprofitable product lines.

Required:

Form groups of two to four students and assign one of the three independent scenarios listed previously to each group. Each group must perform the following requirements:

d. Identify at least two qualitative factors that should be considered before making the decision.

e. Discuss each option, based on the findings of your group, with the class.