Using the accompanying log-log graph, answer the following questions:What are the implications for management if it has forecast its cost on the optimum line?What could be causing the fluctuations above the optimum line?If management forecast the tenth unit on the optimum line, what was that forecast in hours?If management built the tenth unit as indicated by the actual line, how many hours did it take? 500400300200OptimumActual10060201010100200 300 400Total units producedAverage labor-hours per unit888

Management includes a different set of principles planning, directing, organizing, and controlling…

Answered: Using the accompanying log-log graph,…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Using the accompanying log-log graph, answer the following questions:

What are the implications for management if it has forecast its cost on the optimum line?
What could be causing the fluctuations above the optimum line?
If management forecast the tenth unit on the optimum line, what was that forecast in hours?
If management built the tenth unit as indicated by the actual line, how many hours did it take?

500
400
300
200
Optimum
Actual
100
60
20
10
10
100
200 300 400
Total units produced
Average labor-hours per unit
888

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