With the Resources Available, You Can Make the Combinations of Ums

question 22

Multiple Choice

With the resources available, you can make the combinations of Ums and Umies (trinkets from a place called Bandarban) shown in the table. The opportunity cost of producing 60 Umies instead of 30 Umies is: $\begin{array}{|c|c|}\hline \text { Number of Ums } & \text { Number of Umies } \\\hline 60 & 0 \\\hline 40 & 30 \\\hline 20 & 60 \\\hline 0 & 90 \\\hline\end{array}$

• A) 10 Ums
• B) 20 Ums
• C) 30 Ums
• D) 40 Ums

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Definitions:

Manufacturing Plant

A facility used for the production of goods, equipped with machinery and labor force necessary for the manufacturing process.

Ending Finished Goods Inventory

Ending finished goods inventory is the value of all completed products that have not been sold by the end of an accounting period, ready for delivery to customers.

Raw Materials Used

The total cost of materials directly consumed in the production process during a specific period.

Gross Profit

Gross profit is the difference between sales revenue and the cost of goods sold (COGS), showing how efficiently a company produces its products.