Quasi-Tech Corporation Produces Specially Machined Parts Owens Produces Two Models: Model X and Model Y

question 123

Multiple Choice

Quasi-Tech Corporation produces specially machined parts. The parts are produced in batches in one continuous manufacturing process. Each part is custom produced and requires special engineering design activity (based on customer specifications) . Once the design is completed, the equipment can be set up for batch production. Once the batch is completed, a sample is taken and inspected to see if the parts are within the tolerances allowed. Thus, the manufacturing process has four activities: engineering, setups, machining, and inspecting. Costs have been assigned to each activity using direct tracing and resource drivers: $$\begin{array} { c c c c } \text { Activity } & \text { Expected Cost } & \text { Activity Driver } & \text { Activity Capacity } \\\text { Engineering } & \$ 1,000,000 & \text { engineering hours } & 5,000 \text { hours } \\\text { Setups } & \$ 900,000 & \text { setups } & 200 \text { setups } \\\text { Machining } & \$ 2,000,000 & \text { machine hours } & 25,000 \text { machine hours } \\\text { Inspection } & \$ 800,000 & \text { inspection hours } & 2,500 \text { inspection hours }\end{array}$$ Owens produces two models: Model X and Model Y. The following table shows how the two products consume activity. $$\begin{array} { l c c } & \text { Model C } & \text { Model D } \\\text { Units completed } & 300,000 & 200,000 \\\text { Engineering hours } & 1,000 & 4,000 \\\text { Setups } & 80 & 120 \\\text { Machine hours } & 20,000 & 5,000 \\\text { Inspection hours } & 1,500 & 1,000\end{array}$$
What are the global consumption ratios of Model C and D respectively? (round to two decimal places)

• A)0.20; 0.80
• B)0.42; 0.58
• C)0.56; 0.44
• D)0.84; 0.16

Identify and differentiate between various sales objectives (output-related, input-related, behaviorally related, etc.).

Comprehend the sales management process and its interrelated functions.

Grasp the concept of sales plan implementation and evaluation.

Understand the roles and objectives of personal selling and sales force management.

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Definitions:

Office Equipment

Tangible items that are used in an office setting for operational purposes, such as computers, desks, and printers.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, usually comprising the balance sheet, income statement, and cash flow statement.

Profit Margin

Profit Margin is a financial metric that measures the percentage of revenue remaining after all expenses have been deducted from sales.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from total revenue, indicating the company’s profitability.