As operations manager of Holz Furniture, you must make a decision about adding a line of rustic
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With a large process line, you could handle the high figure of $600,000 However, with a small process line you could not and would be forced to expand (at a cost of $150.000), after which time your profit from sales would be $500,000 rather than the $600,000 because of the lost time in expanding the process. If you do not expand the small process, your profit from sales would 1ie held to $400,000. If you build a small process and the demand is low, you can handle all of the demand.
Should you open a large or small process line?
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