Answer to Question #244213 in Economics for Lamboro Yohannes

Question

1.     Assume you are a manager of XY Company, while you conduct a vertical analysis it is identified that 85% of the company expenses are incurred for salary. This intern highly affected the profitability of the organization. As a manager what are the possible remedial actions that you suppose to take in order to mitigate this drawbacks?

Answer 1

As a manager you should review the salary expenses, decrease the number of employees or decrease salary of some of them in order to mitigate this drawbacks.