Slider Processes Rebate Requests for a Large Building Supply Firm

question 93

Multiple Choice

Slider processes rebate requests for a large building supply firm. Slider processed 420,000 rebates in March. All rebates are processed the same day they are received. March costs were labor of $28,000 and overhead of $14,000. What is the cost to process 1,000 rebates?

• A) $66.67.
• B) $100.00.
• C) $10.00.
• D) $42.00.

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Definitions:

Specialization

A method of production where a business or area focuses on the production of a limited scope of goods or services to gain greater degrees of productive efficiency.

Bongos

A pair of small, drum-like musical instruments connected in the center by a bridge, typically played with the hands.

Frisbees

Flat, circular flying discs often used for games and sports.

Comparative Advantage

The ability of a country or firm to produce a particular good or service at a lower opportunity cost than others, leading to more efficient trade possibilities.