Author Question: Lag and straddle strategies for increasing capacity have what main advantage over a leading strategy? (Read 183 times)

daltonest1984 · **on:** Dec 3, 2019

Question 1

A product sells for $5, and has unit variable costs of $3. This product accounts for $20,000 in annual sales, out of the firm's total of $60,000. When performing multiproduct break-even analysis, the weighted contribution of this product is approximately
◦ 0.200.
◦ $1.667.
◦ 0.40.
◦ 0.667.
◦ 0.133.

Question 2

Lag and straddle strategies for increasing capacity have what main advantage over a leading strategy?
◦ They delay capital expenditure.
◦ They increase the need for capital expenditure.
◦ They increase demand.
◦ They are cheaper.
◦ They are more accurate.

vseab · **Reply #1 on:** Dec 3, 2019

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