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Which of the following would most likely happen if a company was operating with insufficient capacity?

(a)    The company would have generally low production costs(b)    The company would be able to minimize operating costs(c)    The company would have a loss of sales and lower profits(d)    The company would be able to maximize profits(e)    The company would be able to gain market share.

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Question added by Vinod Jetley , Assistant General Manager , State Bank of India
Date Posted: 2015/05/11
Shahbaz Bhatti
by Shahbaz Bhatti , Senior Product Manager (Rice) , Omar Kassem Alesayi Marketing Co. Ltd.

Its C: (variable expenses will lower but fixed asset will be higher thus bringing down overall profitability and increasing per unit production cost.)

Muhannad AlHaj Issa
by Muhannad AlHaj Issa , Group IT Manager , Jordanian For Investment & Transportation

missing the layallity and affiliation toward the company .  

  

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

 (c)

ReaThe event that would be most likely to happen if a company was operating with insufficient capacity is that the company would have a loss of sales and lower profits.

              Hence, option (c) is correct.

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