The Operations Manager Has Narrowed Down the Search for a New

question 175

Multiple Choice

The operations manager has narrowed down the search for a new plant to three locations. Fixed and variable costs follow:
$\begin{array} { | l | l | l | } \hline \text { Location } & \begin{array} { l } \text { Fixed Cost } \\\text { per Year }\end{array} & \begin{array} { l } \text { Variable Cost } \\\text { per Unit }\end{array} \\\hline \mathrm { A } & \$ 75,000 & \$ 31 \\\mathrm {~B} & 250,000 & 12 \\\mathrm { C } & 300,000 & 15 \\\hline\end{array}$
Plot the total cost curves in the chart provided below, and identify the range over which each location would be best. Then use break- even analysis to calculate exactly the break- even quantity that defines each range.
$\begin{array}{l}\text { Anmul }\\\begin{array} { c } \text { Cost } \\( \$ 000 ) \end{array}\end{array}$
Which of the following statements is correct?

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Definitions:

Autonomy

The extent to which individuals have the freedom to make their own decisions and control their own work environment.

Creative Behaviour

Actions that result in new or innovative ideas, solutions, or outcomes.

Complex Innovations

Innovations characterized by multiple interdependent components that require coordinated implementation across different parts of an organization or society.

Diffuse

To spread or scatter over a wide area or among a large number of people.