Refer to the Following Figure to Answer the Next Four

question 5

Multiple Choice

Refer to the following figure to answer the next four questions.

-Which of the following represents an inefficient point?

• A) point A
• B) point B
• C) point C
• D) point D
• E) point E

---

Definitions:

Fixed Manufacturing Costs

Expenses that do not change with the level of production, such as rent, salaries of permanent employees, and depreciation of factory equipment.

Markup

The extra charge added to the purchasing cost of items to encompass both overhead expenses and profit, setting the sale price.

Contribution Margin

The excess of sales over variable costs; the excess of manufacturing margin over variable selling and administrative expenses.

Bottleneck Hour

A term used in production and manufacturing to describe the hour or period where the flow of processes slows down due to a limitation in output capabilities, impacting overall productivity.