Question: According to the graph, if only one unit was produced, the cost per unit would be $1.00. In reality,the company would not call in its

According to the graph, if only one unit was produced, the cost per unit would be $1.00. In reality,the company would not call in its worker and start up the equipment to produce one unit. Whatsafeguard do you think that many manufacturers use to avoid this type of problem?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Mathematics Questions!

At the end of 2008, Activo Company implemented a low-cost strategy to improve its competitive position. Its objective was to become the low-cost producer in its industry. A Balanced Scorecard was...

Pratt Company produces two replacement parts, Part A and Part B, for a popular line of DVD players. Part A is made up of two components, one manufactured internally and one purchased from external...

Jolene Askew, manager of Feagan Company, has committed her company to a strategically sound cost reduction program. Emphasizing life-cycle cost management is a major part of this effort. Jolene is...

Brandy Dees recently bought Nievo Enterprises, a company that manufactures ice skates. Brandy decided to assume management responsibilities for the company and appointed herself president shortly...

Compute estimated profit in 1 year if XYZ buys a put option with a strike of $0.95, $1.00, or $1.05. Draw a graph of profit in each case. XYZ mines copper, with fixed costs of $0.50/lb and variable...

Wykle Company produces commercial gardening equipment. Since production is highly automated, the company allocates its overhead costs to product lines using activity-based costing. The costs and cost...

A number of graphs displaying cost behavior patterns are shown below. The vertical axis on each graph represents total cost, and the horizontal axis represents level of activity (volume). Required:...

Patagucci Inc. manufactures and sells athletic equipment. The company began operations on August 1, 2012, and operated at 100% of capacity (66,000 units) during the first month, creating an ending...

1. Which of the following statements regarding aggregate planning is true? A) In a pure level strategy, production rates or work force levels are adjusted to match demand requirements over the...

Required: 1. According to the bor graph, which of the three main business lines generated the most revenue in Year 72 How much fovenue did this line generate in Year 7 ? 2. The rocket-line graph...

Draw the pH-activity profile for an enzyme with one catalytic group at the active site. The catalytic group is a general-acid catalyst with a pKa of 5.6.

Consider X,..., X, id N(, o Id), where Id is the d x d identity matrix. Let Xn be the sample average. Using the sub-exponential tail bound, show that with probabiltiy at least 1-8, od| |X - H2 = 0 (...

The use of an accelerated method instead of the straight - line method of depreciation in computing the net present value of a project has the effect of: A . Raising the hurdle rate necessary to...

Julian Birkinshaw, James Manktelow, Vittorio DAmato, Elena Tosca, and Francesca Macchi In recent years, one of the most profound transformations in the workplace has been the increase in age...