Chairs Tables

0. 45

20. 40

40. 30

60. 0

Based on the above information answer the following questions.

Show your calculations and Explain your answers.

A. Does the production schedule reflect the Law of Diminishing Returns? (Hint: Correct answer is yes)

B. Assume the factory is currently producing 40 chairs and 30 tables and an order comes in for 5 more tables. What is the opportunity cost of producing 5 more tables?

C. Assume the factory is producing 15 chairs and 35 tables. What problem is the company facing?

D. A rush order comes in asking for 50 chairs and 35 tables. What problem will the company have in filling the order?