Which of the Following Aggregate Planning Strategies Is a Capacity

question 41

Multiple Choice

Which of the following aggregate planning strategies is a capacity option?

• A) influencing demand by changing price
• B) counterseasonal product mixing
• C) influencing demand by extending lead times
• D) changing inventory levels
• E) influencing demand by back ordering

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Definitions:

Sales Mix

Sales mix refers to the proportion of different products or services that a company sells, significantly impacting its overall profitability.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, indicating how much revenue contributes to fixed costs and profits.

Fixed Costs

Costs that remain constant in total regardless of changes in the level of activity or volume of production, such as rent, salaries, and insurance.