Chasin Industries Inc

question 119

Multiple Choice

Chasin Industries Inc.has developed a new robot,model JB-32,that is designed to offer superior performance to a comparable robot sold by Chasin's main competitor.The competing robot sells for $11,000 and needs to be replaced after 1,000 hours of use.It also requires $1,000 of preventive maintenance during its useful life.Model JB-32's performance capabilities are similar to the competing product with two important exceptions-it needs to be replaced only after 2,000 hours of use and it requires $1,000 of preventive maintenance during its useful life. From a value-based pricing standpoint what is the reference value that Chasin should consider when pricing model JB-32?

• A) $11,000
• B) $12,000
• C) $22,000
• D) $13,000

Understand and apply the principles of budget preparation, including sales, production, and direct labor budgets.

Calculate production needs based on sales projections and inventory policies.

Identify the components of a master budget and their interrelationships.

Analyze the impact of inventory policies on budgeting (both finished goods and raw materials).

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Definitions:

Paleolithic

Relating to the earliest period of the Stone Age, characterized by the development of the first stone tools by early humans.

Enamel Hypoplasia

A dental disorder characterized by a deficiency in the enamel of the teeth, resulting from disruption of enamel formation.

Arrested Growth

A condition where development or growth is stopped or severely slowed, often due to genetic, environmental, or nutritional factors.

Calcium Consumption

The intake of calcium, a vital mineral for bone health, through diet or supplements.