Action Figures, Inc., is a manufacturer of molded plastic action figures that fast food restaurants purchase to
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Action Figures, Inc., is a manufacturer of molded plastic action figures that fast food restaurants purchase to include in children’s meal packs. Each action figure takes about 1.5 ounces of plastic costing $0.20 per ounce and is molded in a mold. Every month or so, Action Figures contracts with an outside supplier to develop new molds based on current movie and cartoon characters. Each mold could be used indefinitely but, practically speaking, has a life of about three months. (After that, the children are tired of those figures and want to move on to others.)
Required:
1. Is the plastic a flexible or committed resource? Are the molds flexible or committed resources?
2. What is the cost behavior of the plastic? the molds?lop5
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