A Firm That Decides to Emphasize Those Goods with the Highest

question 19

Multiple Choice

A firm that decides to emphasize those goods with the highest contribution margin per unit may have made an incorrect decision when the company:

• A) is highly automated.
• B) has excess capacity.
• C) has capacity constraints in the form of limited resources.
• D) has a high fixed-cost structure.
• E) has a high level of sunk costs.

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Definitions:

Ethos

The characteristic spirit of a culture, era, or community as seen in its beliefs and aspirations.

Credibility

The quality of being trusted and believed in, often achieved through consistency, honesty, and reliability.

Value Systems

The set of beliefs and ethical principles that guide the behaviors, decisions, and actions of individuals or organizations.

Motivated

The state of being driven or inspired to act towards achieving a goal.