Which of the following statements is a valid argument for BarGraphs to reduce its manufacturing capacity?
A) BarGraphs 's strategy is to grow its business as L3 have unlimited demand.
B) BarGraphs can call back the expelled employees if the reduced capacity level proves to be insufficient.
C) BarGraphs already has a high employee turnover rate and a few more will make no difference.
D) BarGraphs wants to reduce product costs as they want to be the cost leaders.

Question

Quizplus · Accepted Answer

Reducing manufacturing capacity can lead to lower product costs as it allows for economies of scale. Therefore, D is a valid argument for BarGraphs to reduce its manufacturing capacity. A, B, and C do not provide valid arguments for reducing manufacturing capacity.

Which of the Following Statements Is a Valid Argument for BarGraphs