7. Which of the following statements best fits with the concept of economies of scale? a. Lower per unit costs as the production scale is increased. b. Gains in efficiency due to producing with a smaller facility. c. Higher per unit costs due to problems with communication, coordination, and bureaucratic red tape. d. Producing a greater variety of output that utilizes similar types of raw materials. 8. Which of the following represents the major reason for developing the production plan as part of Sales and Operations Planning? a. To decide how to best produce exactly what is in the sales plan b. To plan for resources required to produce to the agreed plan c. To plan a schedule for the production of individual products d. To plan the acquisition of new manufacturing facilities 9. A resource is available to 120 hours each week. The current utilized rate is 90% and during the past quarter, the efficiency has been running at 105% Based on this, the rated capacity is: a. 113.4 b. 108hrs. c. 236.2hrs. d. 120hrs. 10. If the sales plan and production plan are not agreed, then the following actions could be taken to resolve the differences except: a. Make no adjustments. b. Use overtime c. Add shifts d. Subcontract e. Reschedule)