Monthly Output at Vincent Sheds and Outbuildings Changed from 15

question 18

Multiple Choice

Monthly output at Vincent Sheds and Outbuildings changed from 15 to 16 outdoor storage buildings,and the total costs changed from $27,000 to $28,500.What was the marginal cost for the company?

• A) $1,500
• B) $2,000
• C) $1,200
• D) $10,000
• E) $12,000

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Definitions:

Long-term Contracts

Agreements between parties that extend over a lengthy period, often used to secure favorable terms and ensure consistent supply or demand.

Warehousing Requirements

The specific needs related to the storage of goods, such as space, security, climate control, and accessibility, determined by the nature of the products and business operations.

Supply Chain Decision

Choices made in the management of the supply chain, affecting sourcing, production, delivery, and all stages in between.

Network Design

The planning and optimization of a company's supply chain network, including the location of production facilities, distribution centers, and the routing of products to customers.