Kumalae Products Makes Four Models of Ukuleles

question 47

Essay

Kumalae Products makes four models of ukuleles.All of the models go through the same assembly line but they differ as to the materials used and the degree of finishing.The Basic model has a low gloss finish and goes immediately to Packaging upon completion in Assembly.The Swietenia model and the Acacia model go through a Buffing process upon completion in Assembly.They then go on to Packaging.The Koa model is the top of the line and goes first to Buffing from the Assembly,then to Special Polishing,then to Packaging.
Kumalae uses operations costing and allocates conversion costs based on the number of units processed in each department.
Required:
(a)What is the cost per unit of each of the completed ukuleles?

Acknowledge the role of cultural diversity in enhancing a business’s competitive advantage.

Learn the significance of embracing and managing diversity for strategic business decisions.

Understand how diversity influences group dynamics and team collaboration.

Identify steps for improving intercultural communication.

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Definitions:

Cost Behaviour

The way in which a cost reacts or changes when there is a change in the level of business activity.

Marginal Revenue

The additional income earned from selling one more unit of a good or service.

Marginal Cost

The increase in total cost that arises from producing one additional unit of a product or service.

Economic Profit-Maximising

The point at which a firm achieves the highest profit possible given its production costs and market conditions.