Explain how increasing First Shift Capacity can reduce per unit labor costs. Select the right answer

A. Assuming marketing's forecast is correct, increasing 1st shift capacity will reduce your need to rely on automation in order to improve labor costs.

B. Assuming production is less than 1st shift capacity, increasing 1st shift capacity will reduce your need for overtime, which incurs time-and-a-half wage rates (labor costs). C. Assuming production matches the marketing forecast, increasing 1st shift capacity will reduce your need for overtime, which incurs time-and-a-half wage rates (labor costs).

D. Assuming production is greater than 1st shift capacity, increasing 1st shift capacity will reduce your need for overtime, which incurs time-and-a-half wage rates (labor costs).

2. Each Segment’s Ideal Spot shows the buyer’s preferred coordinates within the circle. Why is the High Tech Ideal Spot to the lower right of the segment center? Why is the Low Tech Ideal Spot at the center of the Low Tech segment circle?

A. High Tech customers are focused on cutting-edge technology, represented by smaller size and higher performance. Low Tech customers prefer older, tried and true technology that is near the end of its lifecycle, and inexpensive.

B. Low Tech customers are focused on cutting-edge technology, represented by smaller size and higher performance. High Tech customers prefer older, tried and true technology that is almost obsolete, and inexpensive.

C. High Tech customers are focused on cutting-edge technology, represented by smaller performance and higher MTBF. Low Tech customers prefer older, tried and true technology that is high performing, and moderately expensive.

D. High Tech customers care primarily that their products are new - i.e., zero years old, and with high reliability. Low Tech customers prefer new but inexpensive products, and are relitively less influenced by marketing expenditures than are high tech customers.