Jackson,Inc

question 59

Multiple Choice

Jackson,Inc.produces two different products (Product 5 and Product Z) using two different activities: Machining,which uses machine hours as an activity driver,and Inspection,which uses number of batches as an activity driver.The cost of Machining is $500,000,while the cost of Inspection is $30,000.Product uses 20% of total machine hours and 75% of total batches.What is the total Inspection cost assigned to Product 5?

• A)$7,500
• B)$22,500
• C)$125,000
• D)$375,000

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Definitions:

South Dakota

A state located in the Midwestern region of the United States, characterized by its rolling plains and rugged national parks.

Price Elasticity

A measure of the sensitivity of the quantity demanded or supplied of a good to a change in its price.

Demand Function

A mathematical relationship that represents the quantity of a good or service consumers are willing to purchase at various prices.

Revenue-maximizing Price

The price point at which a business can generate the highest total revenue, considering the impact of price changes on sales quantity.