Final answer:
The Haas Company should strategically choose the products to produce, the production process using the lowest total cost approach, the amount of output to match market demand, the product price based on costs and market conditions, and the amount of labor necessary to optimize productivity and minimize costs.
Step-by-step explanation:
When considering what product or products the Haas Company should produce, the company must analyze demand, competition, profitability, and their own expertise and capabilities. Factors such as market trends, consumer needs, and the company's unique selling proposition are crucial in this decision-making process.
The production process selected by Haas Company will depend on a variety of factors including cost, efficiency, technology, and quality. For instance, if machine hours are cheaper, as indicated by the preferable use of production technology 3, the company might opt for a more mechanized production process that relies on more machines and less labor, thereby reducing total costs.
The amount of output Haas Company should produce is ideally determined by market demand and capacity to supply without incurring excess or shortage. They need to balance production with sales projections to avoid overproduction or underproduction, which can affect inventory costs and customer satisfaction.
The price to charge for products is a critical decision that impacts the company's competitiveness and profitability. Haas Company should consider production costs, market conditions, competitor pricing, and perceived value to consumers when setting prices.
As for labor, the amount of labor Haas Company should employ relates directly to the production process chosen, the level of automation, and the required output. The company must balance the number of employees to maximize productivity while minimizing labor costs to remain profitable.