At the Beginning of 2018, Terrapin Company Installed a JIT

question 12

Multiple Choice

At the beginning of 2018, Terrapin Company installed a JIT purchasing and manufacturing system. The following information has been gathered about one of the company's products: $\begin{array}{lr}\text { Theoretical annual capacity } & 3,500 \\\text { Actual production } & 1,800 \\\text { Production hours available } & 700 \\\text { Actual conversi on cost per hour } & \$ 10\end{array}$ What is the ideal conversion cost per unit?

• A)$1.02 per unit.
• B)$29.10 per unit.
• C)$2.00 per unit.
• D)$32 per unit.

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Definitions:

Partnership Agreement

A contract outlining the terms, conditions, and responsibilities of partners in a business venture.

Authority Limitations

Restrictions or bounds on the power or authority of an individual, organization, or institution.

Extra Income

Earnings received from sources other than one's primary job, such as freelance work, investments, or side businesses.

Legal Work

Work or tasks that require legal knowledge, expertise, or skills, typically performed by qualified professionals such as lawyers or paralegals.