Sanchez Angel C.

BSA301

Answer the following questions:

1.What other factors or needed skills can help firms manage their revenues, costs, and profits? Defend
your answer.

Industry knowledge: Having a deep understanding of the industry in which a firm operates is essential
for managing revenues, costs, and profits. This includes understanding the competitive landscape,
customer needs, and industry trends.

 Financial literacy: Firms need to be able to understand and manage their finances in order to be
profitable. This includes having a strong understanding of financial statements, budgeting, and
forecasting.
 Strategic planning: Firms need to have a clear strategic plan in place in order to make sound
decisions about revenue, costs, and profits. This plan should identify the firm's goals, objectives,
and strategies for achieving them.
 Risk management: Firms need to be able to identify and manage risks in order to protect their
profits. This includes risks such as economic downturns, changes in customer demand, and
supply chain disruptions.
 Leadership and communication skills: Firms need leaders who can effectively communicate with
employees, customers, and other stakeholders. This is essential for building a strong team and
executing the firm's strategic plan.

2. Which optimization technique would help businesses to maximize their profits the most? Explain your
answer.

The optimization technique that would help businesses to maximize their profits the most is linear
programming. Linear programming is a mathematical technique that can be used to optimize a linear
function subject to linear constraints. It is a powerful tool that can be used to solve a wide range of
problems, including profit maximization.

Linear programming can be used to optimize profits in a variety of ways. For example, it can be used to
determine the optimal product mix, pricing strategy, and production schedule. It can also be used to
optimize resource allocation and inventory management.