Question

A business will usually choose to produce a new product inan existing facility if the cost is less that the cost of building a new one and the ___________a. type of technology needed for the new product is the same as the technology used for the existing productsb. new product is an extension of an existing product line already produced in the factoryc. human resources requirement for the new product and existing products can be satisfied with the facility's current employeesd. product design is already completede. existing factory has enough capacity to handle demande for the new product as well as the existing products

Answer 1

Answer:

E) existing factory has enough capacity to handle demand for the new products as well as the existing products.

Explanation:

If the existing factory doesn't have enough capacity to produce both the new product and existing ones, then if doesn't matter if the technology used is the same, or the new product is an extension of an existing product line, or existing human resources possess the abilities and knowledge required, or even if the product design is already complete or not.

If the factory's production capacity cannot handle the new product, then the company needs to expand the existing factory's production capacity or build a new facility.