Final answer:
The information that Zend Systems is operating at full capacity is most relevant to Production efficiency assessment. In the case of the WipeOut Ski Company, profits or losses depend on costs, which are not provided. Profitability and the contribution of the marginal unit to profits depend on average and marginal costs versus the selling price.
Step-by-step explanation:
The information provided that Zend Systems is currently operating at full capacity with sales of $47,000 is most relevant to d) Production efficiency assessment. Operating at full capacity indicates that the firm is utilizing its resources to the maximum, which directly concerns its production capabilities and efficiency. While it may also pertain to other areas, such as profitability and market share, the most immediate analysis tied to capacity utilization is the assessment of production efficiency.
For the WipeOut Ski Company scenario, the answers to the proposed questions are as follows:
- Profit or losses: If the firm produces 5 units and sells each for $25, total revenue will be $125. To calculate the company's profits or losses, we would subtract the total costs from this revenue number. However, since total costs are not provided in the scenario, we cannot compute the precise profit or loss.
- Assessing profitability at a glance: You can tell whether the company is making or losing money by comparing the selling price ($25) to the average cost per unit. If the average cost per unit is less than $25, the company is making a profit; if it's more, the company is incurring a loss.
- Contribution of the marginal unit to profits: The marginal unit is adding to profits if the cost to produce that additional unit (marginal cost) is less than the price it's sold for ($25). If it's greater, then the marginal unit is not adding to profits and may be causing a loss.