Davis Manufacturing estimated that it would sell 20 percent more of its most popular product this year. However, economic conditions in the country that supplies some of the component parts for the product caused the cost of these parts to almost double. Davis Manufacturing, therefore, changed course and focused instead on selling more of its domestic products that do not use these component parts. This change of course for the company would be outlined in the firm's

Question

Quizplus · Accepted Answer

A contingency plan is designed to address unexpected events or changes in circumstances, such as the economic conditions affecting component costs, allowing the company to adapt its strategy accordingly.

Davis Manufacturing Estimated That It Would Sell 20 Percent More