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UVW, Inc.

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UVW, Inc. wants to expand its production of several products to meet anticipated demand. UVW's supply management team works with other departments to find the best ways to maximize output at minimum cost. The team determines that production of Item A can be increased from 100 to 120 units per day using existing facilities. However, the firm's goal is at least 130 units per day. Which of the following factors will be MOST important In deciding whether to proceed with the higher production goals?

A.

Are the sales projections reasonable?

B.

Is the incremental cost of the additional units feasible?

C.

Can some of the assembly work be subcontracted?

D.

How can materials and labor be procured for less?

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