The Construction Manager for Acme Construction, Inc If He Feels the Chances of Declining, Stable, and Growing

question 86

Multiple Choice

The construction manager for Acme Construction, Inc., must decide whether to build single-family homes, apartments, or condominiums. He estimates annual profits (in $000) will vary with the population trend as follows: $$\begin{array} { | l | l | l | l | } \hline { \text { Type } } & { \text { POPULATION TREND } } \\\hline & \text { Declining } & \text { Stable } & \text { Growing } \\ \hline \text { Single Family } & 200 & 90 & 70 \\\hline \text { Apartments } & 70 & 170 & 90 \\\hline \text { Condos } & - 20 & 100 & 220 \\\hline\end{array}$$ If he feels the chances of declining, stable, and growing population trends are 40 percent, 50 percent, and 10 percent, respectively, which kind of houses will he decide to build?

• A) single family
• B) apartments
• C) condos
• D) either single family or apartments
• E) either apartments or condos

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Definitions:

Operating Departments

Divisions or units within an organization that are directly involved in the core operations or primary purpose of the business.

Setup Cost

The expenses incurred to get equipment ready to process a different batch of goods, distinct from the operational costs of running the equipment.

Number of Setups

A measurement in manufacturing that refers to how many times equipment is adjusted or changed to produce different products.

Maintenance Department

The section of an organization responsible for maintaining and repairing its facilities, equipment, and vehicles to ensure operational efficiency.