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Transcription of this question: 3.cool Meals (CM)Cool Meals (CM) produces frozen organic ready-made meals that are sold to food retailersthroughout the country.CM buys large quantities of organic ingredients from local farmers for its just-in-case (JIC)stock control management. It uses a cost-plus (mark-up) pricing strategy.CM is known for its:good-quality organic frozen meals, which are perceived as good value for money• flexibility with retailers in terms of quantity of meals supplied, credit given and efficientdelivery at pre-arranged datescorporate social responsibility (CSR) based on a long-term commitment made to farmersto purchase large quantities of organic ingredients every four months and pay a fair pricepromptlyCM has an excellent working relationship with farmers, who always prioritize CMSrequests in terms of quantity and delivery.Recently, an economic downturn and increased competition, especially from non-organicfrozen meal suppliers, has decreased demand for frozen organic meals.The finance manager of CM, Kayleigh, provided the following financial information.Table 1: Selected financial information for CMTotal revenueGross profit marginNet profit marginCreditor daysDebtor daysStock turnover daysCurrent ratioAcid test (quick) ratio201716%6%1050202.10.82018$3 5000003%57040240.6Kayleigh is worried about the cash flow of CM and suggested the company changes thestock control method from just-in-case (JIC) to just-in-time (JIT). She is also looking at otherstrategies to improve CMS financial position.(a)(b)(c)(d)Define the term corporate social responsibility (CSR).Explain one advantage and one disadvantage for CM of using a cost-plus (mark-up)pricing strategy.Explain one advantage and one disadvantage for CM of changing its stock controlmethod from just-in-case (JIC) to just-in-time (JIT).Using the financial information in Table 1, evaluate two strategies that CM coulduse to improve its financial position other than changing to a just-in-time (JIT) stockcontrol method.[2][10]

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