Mabel Has the Following Information to Evaluate Her Current Salary

question 125

Multiple Choice

Mabel has the following information to evaluate her current salary of $63,000 versus total revenues of $120,000 and expenses of $75,000 from starting a new business. How much is the opportunity cost associated with starting the new business?

• A) $75,000
• B) $120,000
• C) $63,000
• D) $45,000

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Definitions:

Lean Manufacturing

Lean manufacturing is a production methodology aimed at minimizing waste within manufacturing systems while simultaneously maximizing productivity.

Conversion Costs

The combined total of labor and manufacturing overhead expenses required to convert raw materials into finished goods.

Setup Time

The duration required to prepare equipment or processes for production, which can affect manufacturing efficiency and costs.

Employee Involvement

A workplace strategy aiming to engage employees in decision-making processes and operations to improve satisfaction and productivity.