The cost to manufacture one unit of Killian Audio Products' best-selling hearing aid, the Zone, is $67.50. The CFO of the company determines that if the company expands the output of its biggest U. S. plant by 20 percent, the unit cost would be only $42.50.
This analysis is based on the concept of:
A. minimum efficient scale.
B. Six Sigma.
C. economies of scale.
D. lean production.
E. total quality management.
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