Balcom Enterprises Is Planning to Introduce a New Product That

question 76

Multiple Choice

Balcom Enterprises is planning to introduce a new product that will sell for $110 per unit. Manufacturing cost estimates for 20,000 units for the first year of production are:
? Direct materials $1,000,000.
? Direct labor $720,000 (based on $18 per hour × 40,000 hours) .
Although overhead has not be estimated for the new product, monthly data for Balcom's total production for the last two years has been analyzed using simple linear regression. The analysis results are as follows:
$\begin{array}{lrr}\text {Dependent variable}&\text {Factory overhead costs}\\\text {Independent variable}&\text {Direct labor hours}\\\text { Intercept } & \$ 120,000 \\\text { Coefficient on independent variable } & \$ 5.00 \\\text { Coefficient of correlation } & 0.911 \\\text { R }^2 & 0.814\end{array}$


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Based on this information, what is the expected contribution margin per unit to be earned during the first year on 20,000 units of the new product? (Assume that all marketing and administrative costs are fixed.)

• A) $14
• B) $13
• C) $99
• D) $32

Recognize the defining characteristics and differences between economic systems (capitalism, socialism, communism).

Identify and differentiate between types of resources (natural, human, financial) and their roles in the economy.

Understand processes and strategies within the marketing mix, focusing on promotion elements.

Comprehend the notion of supply and demand and its impact on pricing and product availability.

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Definitions:

Political Coalition

An alliance formed between different parties, groups, or individuals for a specific political purpose or action.

Regional Strategy

A business approach that focuses on tailoring products, services, and marketing efforts to specific geographic areas or regions to meet local needs and preferences.

Controlling Images

Stereotypical images or narratives that are used to justify and maintain social inequalities.

Systemic Racism

A form of racism that is embedded in the laws and regulations of a society or organization, leading to discrimination and inequality for groups based on race.