A Company Has Three Products Possible Products That It Can

question 125

Multiple Choice

A company has three products possible products that it can produce in a machine intensive production process.Capacity is constrained by the number of hours the machines can run during a period and the products are so popular that all units produced will be sold.Here is additional information:

Which of the following would be an accurate conclusion based on these facts?

• A)A balanced mix of 1/3 A,1/3 B,and 1/3 C should be the goal when maximizing operating income in the short-run.
• B)Since Product C has the greatest contribution margin per unit and therefore emphasizing its production and sales will lead to the highest operating income in the short-run
• C)Since A takes less time to produce,maximization of operating income will occur by emphasizing production and sales of A.
• D)Product B should be emphasized if the goal is to maximize contribution margin.

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Definitions:

Data Analytics

The process of examining datasets to draw conclusions about the information they contain using specialized systems and software.

Big Data

Extremely large datasets that can be analyzed computationally to reveal patterns, trends, and associations, especially relating to human behavior and interactions.

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The strategic approach to the effective management of people in an organization, ensuring their contribution supports organizational goals.

Fleishman System

A method for analyzing jobs and assessing human capabilities by evaluating the relationships between abilities, tasks, and performance standards.