Use the Following Information to Answer Questions 7, 8 and 9

question 47

Multiple Choice

Use the following information to answer Questions 7, 8 and 9
A company that produces diet supplements that uses a highly automated packaging process has the following production and revenue alternatives for three products A, B, and C) that are feasible to produce with existing plant and equipment. Total revenue is in thousands of dollars per month. Total cost for the first shift is $200,000 per month - of which $120,000 is labor, $60,000 is other variable costs, and $20,000 is fixed cost. As the number of shifts is increased, fixed cost remains at $20,000 per month while variable costs other than labor remain the same per shift. For the second shift, labor must be paid 1.2 times the amount paid on the first shift. For the third shift, labor must be paid 1.4 times what it receives in the first shift.
-What is the total monthly cost if the firm uses three shifts?

• A) $168,000
• B) $248,000
• C) $280,000
• D) $332,000
• E) $632,000

---

Definitions:

Organizational Performance

The measurement of how effective and efficient an organization is in achieving its goals and objectives.

Charismatic Leadership

A leadership style characterized by an individual's ability to inspire, motivate, and foster enthusiasm among followers through personal charm and persuasive communication.

Follower Satisfaction

Refers to the degree to which followers or subordinates feel fulfilled and content with their leadership and organizational environment.

Leadership Effectiveness

The extent to which a leader is able to achieve desired results or outcomes through the direction, influence, and control of organizational resources.