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Your Company Manufactures Basic Widgets, Modified Widgets Called "Wadgets," and a High-Performance

Question 4

True/False

Your company manufactures basic widgets, modified widgets called "wadgets," and a high-performance widget called the "wodget." The industry sales ratio for the three lines are widget-70%, wadget-20%, and wodget-10%. You learn that while your company is selling 70 percent basic widgets, they are still $500,000 under their forecast for this line, while unit volume is right at expected levels (i.e., 100% of quota). This fact suggests they should revise their forecast rather than working harder to sell more widgets.

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