A Company Is Investigating Two Automated Approaches for Its Production

question 46

Multiple Choice

A company is investigating two automated approaches for its production process. It has collected the following cost information about each:
$\begin{array}{|l|c|c|}\hline \text { Alternative } & \text { Fixed Cost } & \text { Variable Cost } \\\hline \text { CNC } & \$ 80,000 & \$ 2.75 \\\hline \text { FMS } & \$ 190,000 & \$ 1.25 \\\hline\end{array}$
-The breakeven volume is _____.

• A) less than or equal to 20,000 units
• B) more than 20,000 but less than or equal to 40,00 units
• C) more than 40,000 but less than or equal to 60,000 units
• D) more than 60,000 but less than or equal to 80,000 units

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Definitions:

Linking Up

The act of connecting or bringing together resources, individuals, or systems to facilitate collaboration, communication, or function.

Cascading Approach

A strategic method where decisions or policies are passed down through the levels of an organization, allowing for alignment and consistency across units.

Organizational Goals

Represents the strategic objectives or targets that an organization aims to achieve, which guide its operations and are used to measure its performance.

Performance Appraisal System

A formal process through which employee performance is assessed, typically on a regular basis, against defined objectives and criteria.