Winona's Fudge Shoppe Is Maximizing Profits by Producing 1,000 Pounds

question 74

Multiple Choice

Winona's Fudge Shoppe is maximizing profits by producing 1,000 pounds of fudge per day. If Winona's fixed costs unexpectedly increase and the market price remains constant, then the short run profit-maximizing level of output

• A)is less than 1,000 pounds.
• B)is still 1,000 pounds.
• C)is more than 1,000 pounds.
• D)becomes zero.

Recognize the benefits and challenges of JIT partnerships with suppliers.

Understand the concept of throughput and its Measurement.

Understand the application and importance of the 5Ss in Lean production.

Comprehend the significance of JIT in reducing in-transit inventory and the role of supplier location.

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Definitions:

External Financing Needed

The amount of funding a company must seek from outside sources to finance its business operations and growth ambitions beyond what it can generate internally.

Internal Rate of Growth

The maximum rate of growth a firm can achieve without resorting to external financing, relying solely on its own resources.

Retained Earnings

The portion of net income that is retained by a company rather than distributed to its shareholders as dividends.

Sustainable Growth Rate

The maximum rate at which a company can grow its sales, earnings, and dividends without increasing its financial leverage, relying solely on its internal resources.