When an order arrives at a company that manufactures archery equipment is below the break-even point, the order is likely to create a(n):
A) order-quantity arrhythmia.
B) marketing-cost dilemma.
C) small-order problem.
D) need for an ABC analysis.
E) ledger-account bubble.

Question

Quizplus · Accepted Answer

The correct answer is C) small-order problem. This is because when an order arrives that is below the break-even point, it means the revenue generated from the order will not cover the fixed and variable costs associated with producing the goods. This situation is typically referred to as a small-order problem, where the cost of fulfilling the order may not justify the revenue it brings in, potentially leading to a loss or very minimal profit for the company.

When an Order Arrives at a Company That Manufactures Archery