Scenario 2.4 a Company Is Considering Two Options for the Production of Production

question 75

Multiple Choice

Scenario 2.4
A company is considering two options for the production of a part needed downstream in the manufacturing process. Particulars are as follows:

-Use Scenario 2.4 to answer this burning question. For a monthly volume of 3,000 units, which automation approach should be chosen?

• A) specialized automation
• B) general automation
• C) Either approach is acceptable, because costs are the same for either option at 3,000 units.
• D) Can't be determined with information given.

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Definitions:

Gross Domestic Product

The total market value of all final goods and services produced within a country in a specific time period.

Aggregate Expenditure

This is the total spending on final goods and services in an economy, including consumption, investment, government purchases, and net exports.

Disposable Income

The budget households have for expenses and savings after income tax deductions.

Planned Spending

Planned or budgeted expenditures by individuals, companies, or governments anticipated over a certain period.