PRO Shops Has a Capacity of 45,000 Units, and Is

question 88

Multiple Choice

PRO Shops has a capacity of 45,000 units, and is currently producing and selling 40,000 at $25 a unit. The present cost structure, on a per unit basis, is: An order for 7,000 units has been received from a Japanese company at a price of $20 per unit. If the order is accepted, profit will

• A) Decrease by $2,000
• B) Increase by $14,000
• C) Increase by $7,000
• D) Increase by $4,000

Grasp the concepts of supply chain management and its critical role in operations.

Acknowledge the environmental and sustainability considerations in manufacturing and operations systems.

Comprehend the strategies for continuous improvement and total quality management (TQM) within organizations.

Understand the methodologies for scheduling, project planning, and benchmarking in operations management.

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Definitions:

Wind Power

The conversion of wind energy into a usable form of power, typically electricity, using wind turbines.

Interest Rate

Interest payments expressed as a percentage of the loan.

Investment

The allocation of resources, usually financial, to generate income or profit over time.

Physical Capital

Tangible assets used in the production of goods and services, such as machinery, buildings, and equipment.