23. A company making shirts is evaluating whether it is currently operating at a profit or at a loss. The company is producing 42,000 shirts. The shirts are selling for $ 35.00 per unit; and the fixed cost is $ 500,000. In addition, the variable cost per unit is $ 25. Based on this information, which of the following statements is correct?

1. The breakeven volume is 42,000 units; and the company is operating at a profit.
2. The breakeven volume is 42,000 units; and the company is operating at a loss.
3. The breakeven volume is 50,000 units; and the company is operating at a profit
4. The breakeven volume is 65,000 units; and the company is operating at a profit
5. None of the above

24. A supermarket uses a supplier for its bottled water. The annual demand for this product is 24,000 units. The supermarket purchases bottled water from its supplier at a price of 0.8 dirhams per bottle. The holding cost per bottle of water per year is 0.4 dirhams. The ordering cost for the supermarket is 80 dirhams per order, and the lead-time is 2 days. The company operates 250 days a year. The supermarket uses the EOQ model to manage its inventories. What is the inventory cycle time (i.e.; time between orders)?

1. 7.75 days
2. 96 days
3. 32.27 days
4. 6 orders
5. None of the above

25. Which of the following smoothing constants would make an exponential smoothing forecast equivalent to a naive forecast?

a. 0

b. 1 divided by the number of periods

c. 0.5

d. 1.0

e. None of the above

26. Last years (2020) report show a labor productivity of 6 units per labor hour. This years (2021) labor productivity shows an increase by 50%, from last year. Attempts to forecast next years (2022) labor productivity shows that the new changes the company intends to introduce might actually reduce labor productivity by 25%, from this year. What is this years and the next years labor productivity, respectively?

1. This years is 9 units/labor hour; and next years is 6.75 units/labor hour
2. This years is 3 units/labor hour; and next years is 3.75 units/labor hour
3. This years is 9 units/labor hour; and next years is 4.55 units/labor hour
4. This years is 6 units/labor hour; and next years is 4.55 units/labor hour
5. None of the above

27. _____________________ is when a bakery purchases a wheat farm:

1. horizontal integration
2. forward vertical integration
3. backward vertical integration
4. keiretsu
5. BPR