Table 13-2 Adrienne's Premium Boxing Service Subcontracts with a Chocolate Manufacturer to Manufacturer

question 163

Multiple Choice

Table 13-2
Adrienne's Premium Boxing Service subcontracts with a chocolate manufacturer to box premium chocolates for their mail order catalogue business.Adrienne rents a small room for $150 a week in the downtown business district that serves as her factory.She can hire workers for $275 a week.Costs are in dollars per week.
-Refer to Table 13-2.Adrienne has received an order for 3000 boxes of chocolates for next week.If she expects that the trend in the marginal product of labour will continue in the same direction, it is most likely that her best decision will be to:

• A)hire about 12 new workers and hope she can satisfy the order
• B)commit to meeting the order and then take three weeks to complete the job
• C)not commit to meeting the order until she can move to a larger room and hire more workers to box the chocolates
• D)close her business until she is able to hire more productive workers

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Definitions:

Business Processes

A set of tasks and activities that are sequentially organized to achieve a specific organizational goal or objective.

Independent Events

Two or more events where the occurrence of one does not affect the probability of the others.

Normal Distribution

A bell-shaped probability distribution that is symmetric about the mean, describing how continuous data is dispersed around the average value.

Standard Deviation

A gauge for determining the level of difference or scattering in a series of amounts.