Santa Lucia Industries employs 500 workers in the factory. These workers produced 85,000 units in the preceding year. Due to a special order, the units produced in the current year increased to 95,000 units. However, Santa Lucia produced these units without adding workers. How is that possible?
A)The labor cost associated with the additional units sold will be a relevant cost.
B)The employees were a flexible resource in this situation.
C)The plant had some unused activity capacity.
D)none of the above

Question

Quizplus · Accepted Answer

The plant had some unused activity capacity, which allowed the workers to produce more units without the need to hire additional workers. This could be due to various factors such as improved efficiency, better organization, or more effective use of equipment.

Santa Lucia Industries Employs 500 Workers in the Factory