Question

The firm know volume of sales exactly and increase production capacity for that sales. Can I...

The firm know volume of sales exactly and increase production capacity for that sales. Can I use increase percentage of production capacity for sales growth ?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

For the success of the business, the planning of the capacity utilization is essential. The quality of the products should be ensured for any level of capacity. When a company is planning to increase the production capacity for sales growth, the ability of the company to supply will increase. Then the cost of the production may rise and the quality may decline.

To meet the excess demand, scheduling of overtime may require. This will automatically decrease the quality of the production.

So it is advised to avoid over-utilization of capacity. Because, it will put the company in trouble. Usually in such situations, the company may act to reduce demand with longer delivery times and higher prices.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The rubber company use Matching Order, which is that we start by considering the price and...
The rubber company use Matching Order, which is that we start by considering the price and quantity of materials that we can buy each day, after which this price will be added to the cost and margin. so gross magin is stable So key driver of profit of the firm is production capacity Could you answer Is it ok to predict sales growth by using increase percentage of production capacity ? For example, The firm has production capacity 290,000 on...
Lando Company is planning on a 20% increase in sales volume next year. This year’s sales...
Lando Company is planning on a 20% increase in sales volume next year. This year’s sales revenue is $3,435,000 and its year-end balance sheet shows total current assets of $830,000, total plant assets of $1,670,000, and total current liabilities of $450,000. The company’s dividend payout ratio is 40% and its profit margin is expected to remain steady at 14%. The company is presently operating at full capacity so it estimates that it will need to purchase $300,000 of additional plant...
With a full capacity, the need of additional funds of a firm is reduced by ____...
With a full capacity, the need of additional funds of a firm is reduced by ____ Spontaneous growth of current liabilities Spontaneous growth of current assets A sharp increase in forecasted sales A moderate growth of dividends
1.With sales of $250, a firm has $80 of fixed assets operating at 75% of capacity....
1.With sales of $250, a firm has $80 of fixed assets operating at 75% of capacity. How large can sales be without any need of additional external funds? A)$312.5 B)$328.1 C)$333.3 D)$345.6 2.A firm had $450 of sales, with $360 of fixed assets at 60% of capacity. How much can sales increase to reach full capacity? A)$810 B)$750 C)$600 D)$300 3.If the inventory/sales ratio is 1.5 when sales are $200, but that the ratio declines to 1 when sales climb...
A firm is considering several policy changes to increase sales. It will increase the variety of...
A firm is considering several policy changes to increase sales. It will increase the variety of goods it keeps in inventory, but this will increase inventory by $12,000. It will offer more liberal sales terms, but this will result in average receivables increasing by $69,000. These actions are expected to increase sales by $820,000 per year, and cost of goods will remain at 80% of sales. Because of the firm’s increased purchases for its own production needs, average payables will...
The vice-president of marketing, Carol Chow, thinks that her firm can increase sales by 15,500 units...
The vice-president of marketing, Carol Chow, thinks that her firm can increase sales by 15,500 units for each $5-per-unit reduction in its selling price. The company’s current selling price is $90 per unit and variable expenses are $63 per unit. Fixed expenses are $688,500 per year. The current sales volume is 37,000 units. Operating income $310500 Break-even point 25500 units Break-even point $ 2295000 Answer the following questions: Assuming that Carol is correct, what is the maximum profit that the...
Changing production process increase multifactor and decrease its capacity?
Changing production process increase multifactor and decrease its capacity?
I have to create a production budget: 1. I don't know if what I already answered...
I have to create a production budget: 1. I don't know if what I already answered is correct (verification on that would be great) 2. I'm not sure how to solve the rest of it If anyone does answer this, can you please write our the formulas as well so I can understand how you answered it. Thanks a million! INPUT AREA: UNIT SALES VALUES: FROM "FORECAST" WORKSHEET      DESIRED FIN. GOODS ENDING INVENTORY IS 5% OF THE NEXT MONTH'S...
How do the levels of production volume and sales volume interact when using direct costing? How...
How do the levels of production volume and sales volume interact when using direct costing? How does it affect the outcome of an absorption costing statement if production volume exceeds sales volume? What if production and sales volumes are the same? in simple words please
write vhdl program for y= 5 + 3p + 2 Q/R i dont know exactly but...
write vhdl program for y= 5 + 3p + 2 Q/R i dont know exactly but can you please solve it by taking any type or variable as example
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT