A Manufacturer of Paint Has Two Factories Located in France

question 30

Multiple Choice

A manufacturer of paint has two factories located in France and Spain and due to economic conditions must close one of them. The factory productivity data is as follows: $\begin{array}{lcc}&\text { Gallons of Paint } & \text { Total Costs } \\&\text { Produced }(1,000 \mathrm{~s}) & \text { (millions \$) }\\\text { Factory (Spain) } & 4,600,000 & \$ 5,250,000 \\\text { Factory (France) } & 4,000,000 & \$ 3,500,000\end{array}$
Based on the productivity analysis of both the factories, which of the following statements is true?

• A) The factory in Spain is more productive than the factory in France.
• B) Based solely on this productivity analysis, the factory in Spain must be closed.
• C) Based solely on this productivity analysis, the factory in France must be closed.
• D) Both factories have identical productivity levels. So, other criteria must be used to make this decision.

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