Myers Inc. manufactures biodegradable bottles. Since this is a patented method ofproducing environmentally-friendly plastic, they cannot use an overseas contractor.They will make the products in the United States. What criteria would you use toassess their business model?O The production expertise scale will tell if the company is ready to partake in such a venture.O The fixed costs need to be compared to other similar companies in the U.S. Thestandardization of the product is making it more expensive to produce, as the copyrightsare implemented.O Since the product will be outsourced, the manager needs to assess the simplicity of thesupply chain. Even though the manufacturing costs are high, the transportation costs will below.O The minimum efficient scale will tell the minimum volume they need to produce to reacheconomies of scale. The quality of the in-house product needs to be constantly inspected,as they will not use outside sourcing.

Answered: vironmentally- ke the product:

Business

Accounting

vironmentally- ke the product:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Myers Inc. manufactures biodegradable bottles. Since this is a patented method of
producing environmentally-friendly plastic, they cannot use an overseas contractor.
They will make the products in the United States. What criteria would you use to
assess their business model?
O The production expertise scale will tell if the company is ready to partake in such a venture.
O The fixed costs need to be compared to other similar companies in the U.S. The
standardization of the product is making it more expensive to produce, as the copyrights
are implemented.
O Since the product will be outsourced, the manager needs to assess the simplicity of the
supply chain. Even though the manufacturing costs are high, the transportation costs will be
low.
O The minimum efficient scale will tell the minimum volume they need to produce to reach
economies of scale. The quality of the in-house product needs to be constantly inspected,
as they will not use outside sourcing.

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