You Are in Charge of the Local City-Owned Aquatic Center

question 35

Multiple Choice

You are in charge of the local city-owned aquatic center. You need to increase the revenue generated by the aquatic center to meet expenses. The mayor advises you to increase the price of a day pass. The city manager recommends reducing the price of a day pass. You realize that

• A)the mayor thinks demand is elastic, and the city manager thinks demand is inelastic.
• B)both the mayor and the city manager think that demand is elastic.
• C)both the mayor and the city manager think that demand is inelastic.
• D)the mayor thinks demand is inelastic, and the city manager thinks demand is elastic.

Understand the impact of delivery and service activities on customer satisfaction and business efficiency.

Understand how to analyze customer profitability accurately.

Recognize the principles and benefits of just-in-time (JIT) systems in inventory management.

Compute and understand the significance of economic order quantity (EOQ) for inventory management.

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Definitions:

Direct Labor

The labor costs associated with workers who are directly involved in the production of goods or provision of services.

Total Manufacturing Costs

The aggregate cost of direct materials, direct labor, and manufacturing overhead incurred in the production of goods.

Work in Process Inventory

The stock of partially finished goods still undergoing manufacturing processes.

Cost of Goods Manufactured

Total cost incurred by a company to produce goods during a specific period, including materials, labor, and overhead.