A Small Manufacturer That Makes Clothespins and Other Household Products

question 66

Multiple Choice

A small manufacturer that makes clothespins and other household products buys new injection molding equipment for a cost of $500,000. This will allow the manufacturer to make more clothespins in the same amount of time with an estimated increase in sales of 25%. If the manufacturer currently makes 75 tons of clothespins per year, which sell at $18,000 per ton, what will be the increase in revenue next year from the new equipment?

• A) $125,000
• B) $303,750
• C) $337,500
• D) $837,500

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Definitions:

Leadership Effectiveness

The degree to which a leader is successful in achieving desired results through the direction and coordination of others.

Low Concern

A state or situation in which there is little to no interest or emphasis placed on a particular issue or element.

Initiating Structure

A leadership behavior characterized by the leader defining and structuring his or her role and the roles of subordinates, aimed at establishing well-defined patterns of organization and communication.

Leadership Behavior

The actions, attitudes, and methods used by a leader to motivate, influence, and guide their followers towards the achievement of goals.