Last month TMJG Co. started producing a new product called Thingamajigs from its new plant. Sales were quite good for the first couple of weeks. Unfortunately, a technological innovation was then announced by a competitor. This innovation will almost completely eliminate the demand for Thingamajigs. As a result, TMJG has decided to shut down and dismantle the plant next week. The average cost per unit will be highest if the plant was _________________________.

a) a small facility ?b) in the right location ?c) a large facility

d) just-in-time ?e) a medium facility

EXPLAIN YOUR REASON FOR CHOOSING THE ANSWER!!

Answer rating: 100% (QA)

The correct is Large Facility because when a new product is launch there is massive expenses under t... View the full answer