A Company Is Evaluating Which of Two Alternatives Should Be

question 22

Multiple Choice

A company is evaluating which of two alternatives should be used to produce a product that will sell for $35.00 per unit.The following cost information describes the two alternatives: If total demand (volume) is 120,000 units,then the company should

• A)select Process A with a profit of $940,000 to maximize profit.
• B)select Process B with a profit of $450,000 to maximize profit.
• C)select Process A with a profit of $700,000 to maximize profit.
• D)select Process B with a profit of $690,000 to maximize profit.

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Definitions:

Reflective Cognitive Style

A cognitive approach where individuals tend to analyze and reflect upon information and experiences before reaching a conclusion.

Cognitive Task

An activity or exercise designed to test or engage cognitive functions such as memory, attention, or problem-solving.

The Bell Curve

A book that argues intellectual capability is largely genetic and can be represented via a bell-shaped curve among populations.

IQ

An abbreviation for Intelligence Quotient, a numerical measure of a person's cognitive abilities in relation to their age group.