The Supreme Juice Company Undertakes the Following Activities in Its

question 38

Multiple Choice

The Supreme Juice Company undertakes the following activities in its production operation and incurred the following costs during the first half of 2019:
$\begin{array}{llcc} \text { Harvest oranges} &\$25,000 \\ \text {Prepare oranges for processing } &20,000\\ \text { Extract juice from oranges } &18,000\\ \text { Process juice into orange juice concentrate, } &15,000\\ \text { orange juice or orange smoothies } &\\ \text {Package completed products } &9,000\\\end{array}$
Processing the juice into 3 final products involves the use of 2 machines, each of which incurred depreciation costs of $15,000 for the first half of 2019. Each product requires a different set up on the processing machines, so Supreme Juice normally sets up the machines to produce concentrate for the first week of each month. The machine is then set up to produce orange juice for the next 2 weeks. Finally, workers set up the same machines to produce orange smoothies during the last week of each month.
During the first half of 2019, 30% of the oranges harvested were turned into orange juice concentrate, 45% were processed into orange juice, and 25% became orange smoothies. The relative sales values of each product were: 5% for orange juice, 20% for orange juice concentrate, and 10% for smoothies. The orange juice concentrate operation takes up 40% of Supreme Juice's total factory space. Regular orange juice and orange smoothies occupy 35% and 25%, respectively.
Which of the following activities is likely to be classified as product-level?

• A) Packaging
• B) Harvesting
• C) Extracting
• D) Prepare oranges for processing

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Definitions:

Proportion of Weights

The ratio of an individual weight to the total weight of all items combined, often used in statistical calculations to determine relative importance.

Tchebysheff's Theorem

A statistical rule stating that for any set of data, no matter the distribution, a certain proportion of values will fall within a specified number of standard deviations from the mean.

Empirical Rule

A statistical rule stating that for a normal distribution, nearly all of the data will fall within three standard deviations of the mean.

Median

The middle value in an ordered list of numbers, or the average of the two middle numbers when the list has an even number of observations.