Answer:
a. Maturing of a product
When the product reaches its maturity stage, its sales volume reduces considerably. This would require different marketing strategies like product enhancement, price changing or developing new designs, etc.
b. Technology innovation in the manufacturing process
This will cause many changes in the strategy as technological innovation would reduce manual labor cost. Also, the organization would need skilled employees to deal with the new technology.
- Cost cutting is instituted.
- Product changes decrease.
- Design compromises are instituted.
- Labor Skills decrease
- Optimum capacity may be achieved
- Manufacturing process stabilizes
Answer:
The correct answer is D.
Explanation:
Giving the following information:
The Thomlin Company estimates that total overhead for the current year will be $16,000,000 and that total machine hours will be 200,000 hours.
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 16,000,000/200,000= $80 per machine hour
Answer:
a. 32 refrigerators
b. 29 refrigerators
Explanation:
a. The computation of the economic order quantity is shown below:
= 32 refrigerators
b. Now the reorder point is
= Annual demand ÷ total number of days in a year × lead time + (service level × standard deviation for the lead time)
= 500 units ÷ 365 days × 7 days + (1.90 × 10 units)
= 9.59 + 19
= 29 refrigerators
Market failure occurs when a free market is unable to A) distribute resources efficiently.
Answer:
It describes the problem of transaction costs and negotiation.
Explanation:
Externalities are situations that arise when the activities of an organization affects another for good or bad, but with the first organization that caused the change, receiving no benefits (if it was a positive change), or bearing no costs (if it as a negative change).
Ronald Coase proposed some theories about the possible solutions to externalities. One of them is negotiation between the two parties involved. The problem with this solution is the high costs of transaction that could be spent before an agreement is reached. The number of people involved in the negotiation could also be a problem.
