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how does capacity utilization affect product mix and profitability?

Asked by: 418 days ago - 1 Answers - 1345 views

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    Manufacturing plants have a certain capacity they can produce goods/services at. If a product is deemed profitable, it’s likely the capacity will be maximized, and potentially expanded. If expansion is the decision, that could mean an increase in manufacture of the same product, or diversification into a new product, expanding the product mix. This depends on the demand for the current good, and the supply of the proposed new good.

    Answer by Rick 195 days ago


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