Figure 7-1

question 31

Multiple Choice

Figure 7-1. The receiving department of Owen has three activities: unloading,counting goods,and inspecting.Unloading requires a forklift that is leased for $15,000 per year.The forklift is used only for unloading.The fuel for the forklift is $2,000 per year.Inspection requires special testing equipment that has a depreciation of $500 per year and an operating cost of $1,000 per year.Receiving has four employees who each have an average salary of $35,000 per year.The work distribution matrix for the receiving personnel is as follows:
Refer to Figure 7-1.Calculate the cost for inspection.

• A)$56,000
• B)$54,000
• C)$50,500
• D)$52,000

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Definitions:

Weekly Payments

Regular payments made on a weekly basis, often used in terms of loan repayment schedules or employment salaries.

Stated Rate

The annual interest rate declared on a financial instrument, such as a bond, without accounting for compounding within the year.

Rate Of Return

The accrual or diminishment of value in an investment over a specific epoch, visualized as a percentage of the investment’s inaugural cost.

Savings Account

A deposit account held at a bank or other financial institution that provides principal security and a modest interest rate.