Steve is a production manager for a tool company. The tool company makes $3 on e

Question

Steve is a production manager for a tool company. The tool company makes $3 on every screwdriver, $5 on every hammer, and $2 on every wrench. He decides to fill orders on hammers first. Which method of decision making is he using and why? Question 16 options: Preference decision because choosing a project with a higher return would yield higher profits Preference decision because choosing a project that meets the capacity available yields efficiency Screening decision because choosing a project that meets minimum requirements is enough Screening decision because the company is making more money from the hammers

Explanation / Answer

Preference decision because choosing a project with a higher return would yield higher profits. Incorrect. As we cannot say anything about investment returns cannot be calculated.

Preference decision because choosing a project that meets the capacity available yields efficiency. Incorrect. No information is given regarding Capacity efficiency.

Screening decision because choosing a project that meets minimum requirements is enough. Incorrect. Nothing can be commented.

Screening decision because the company is making more money from the hammers. Correct. As he making the most in Hammer.

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