If available capacity is insufficient in the medium term, what strategy can the firm follow?
a. hire more workers
b. build a new facility
c. backorder items in shortage
d. exit the market
a. hire more workers
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In the United States, the average annual real return on stocks from 1960 to 2012 has been approximately
A. 1 percent. B. 2 percent. C. 7 percent. D. 10 percent.
Ferdinand runs a pie shop in a busy metropolis. He sells his fresh pies for $7, but it costs him $2.50 to make them. The cooking equipment in his shop cost him $46,000. How many pies does Ferdinand need to sell to make $50,000 annually?
A. 12,645 pies B. 33,000 pies C. 16,000 pies D. 21,333 pies E. 8,500 pies
The point in the production process at which outputs are first identifiable as individual products is called the split up point
Indicate whether the statement is true or false
Wollan Corporation has two operating divisions--an East Division and a West Division. The company's Logistics Department services both divisions. The variable costs of the Logistics Department are budgeted at $39 per shipment. The Logistics Department's fixed costs are budgeted at $402,400 for the year. The fixed costs of the Logistics Department are determined based on peak-period demand. Percentage of Peak-period Capacity RequiredBudgeted ShipmentsEast Division 15?% 1710? West Division 85?% 5440? At the end of the year, actual Logistics Department variable costs totaled $300,105 and fixed costs totaled $428,000. The East Division had a total of 2560 shipments and the West Division had a total of 4850 shipments for the year.How much actual Logistics Department cost should
not be allocated to the operating divisions at the end of the year? A. $25,600 B. $36,715 C. $0 D. $11,115