TABLE 5-8 Two Different Designs on a New Line of Winter Jackets

question 194

Short Answer

TABLE 5-8
Two different designs on a new line of winter jackets for the coming winter are available for your manufacturing plants. Your profit (in thousands of dollars) will depend on the taste of the consumers when winter arrives. The probability of the three possible different tastes of the consumers and the corresponding profits are presented in the following table.

-Referring to Table 5-8, if you decide to choose Design A for 30% of the production lines and Design B for the remaining production lines, what is the expected profit?

---

Definitions:

Period Cost

Costs that are not directly tied to the production process and are expensed in the period they occur, such as selling, general, and administrative expenses.

Salespersons

Individuals who are responsible for selling products or services to customers, often tasked with meeting sales quotas and engaging in customer service.

Time Tickets

Documents used to record the amount of a worker's time spent on each job, which can be used for payroll, cost accounting, and project management.

Job Cost Sheets

A record used to compile the costs associated with a specific job or project, tracking direct labor, materials, and overhead.