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Answer:
65000 units
Explanation:
Given:
Expected sales of product W in April = 60000 units
Expected sales of product W in May = 75000 units
Expected sales of product W in June = 70000 units
Inventory in hand at the end of each month = 40% of the next month's expected sale
Inventory expected at the end of the April = 40% of the expected sales in May
or
Inventory expected at the end of the April = 0.4 × 75000 = 30000 units
Therefore, the total units required in April = Expected sales of product W in April + Inventory expected at the end of the April
or
the total units required in April = 60000 + 30000 = 90000 units
Now,
Excessive production in March (inventory) = 25000 units
Hence, the units required to be produced in April = the total units required in April - Excessive production in March (inventory)
or
the units required to be produced in April = 90000 - 25000 = 65000 units
Answer:
Option B. Implement process innovations that lower per unit costs
Explanation:
The reason is that the controlling cost will give cost advantage over the competitors and will let the company to compete at a better platform making greater number of sales and driving maximum sales which will also give economies of scale. Economies of scale is the benefits of additional costs savings that comes with the additional manufacturing of the product which means that greater the manufacturing the greater would be the savings of costs. So economies of scales give competitive advantage over the rivals so the correct option is B.