1. Currently, Product Acre in the low segment has MTBF of 16,000 hours.   If MTBF is reduced to 14,000 hours, what would be the effect on material costs?   a. Material costs would increase by $ 0.60 per unit   b. Material costs would decrease by $ 0.60 per unit   c. Material costs would increase by $ 0.30 per unit   d. Material costs would decrease by $ 0.30 per unit

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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1. Currently, Product Acre in the low segment has MTBF of 16,000 hours.

 

If MTBF is reduced to 14,000 hours, what would be the effect on material costs?

 

a. Material costs would increase by $ 0.60 per unit

 

b. Material costs would decrease by $ 0.60 per unit

 

c. Material costs would increase by $ 0.30 per unit

 

d. Material costs would decrease by $ 0.30 per unit

 

2. Given customer needs in the High Segment, which is best way to compete in that segment?

 

a. Source of Competitive Advantage should be Product/Service Differentiation

 

b. Source of Competitive Advantage should be Cost Leadership

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