A manufacturing company had been under pressure to increase profits, so it began to produce additional goods. The company was encouraged by the initial increases in revenue, even though profits per item produced were lower than average. Still, total profits increased, so the company decided to make another significant increase in production. This time, however, the profit per item had decreased so much that the company made almost no extra profit from the increase in production. This situation illustrates what concept? A. Productivity analysis
B. Cross-training
bC. Law of diminishing returns
D. Comparative advantage

Bandar industries berhad of malaysia manufactures sporting equipment. one of the company’s products, a football helmet for the north american market, requires a special plastic. during the quarter ending june 30, the company manufactured 35,000 helmets, using 22,500 kilograms of plastic. the plastic cost the company $171,000. according to the standard cost card, each helmet should require 0.6 kilograms of plastic, at a cost of $8 per kilogram. 1. what is the standard quantity of kilograms of plastic (sq) that is allowed to make 35,000 helmets? 2. what is the standard materials cost allowed (sq x sp) to make 35,000 helmets? 3. what is the materials spending variance? 4. what is the materials price variance and the materials quantity variance?