The Following Data Pertains to the Montrose Company's Three ProductsCommon Fixed Costs Inspecting Products

The Answer of The Following Data Pertains to the Montrose Company's Three ProductsCommon Fixed Costs Inspecting Products

The Following Data Pertains to the Montrose Company's Three ProductsCommon Fixed Costs Inspecting Products

The Answer of The Following Data Pertains to the Montrose Company's Three ProductsCommon Fixed Costs Inspecting Products

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The Following Data Pertains to the Montrose Company's Three Products

question 78

Multiple Choice

The following data pertains to the Montrose Company's three products: $\begin{array}{lrrr}&M&N&O\\\text { Unit sales per month } & \underline{9,000} & \underline{14,000} & \underline{8,000} \\\\\text { Selling price per unit } & \$ 6.00 & \$ 11.25 & \$ 7.50 \\\text { Variable costs per unit } & 3.00 & 9.00 & 7 . 0 0\\\text { Unit contribution margin } & \$ 3.00 & \$ 2.25 & \$ 0.50 \\\text { Batches } & 5 & 10 & 5 \\\text { Setups } & 6 & 3 & 1\\\text { Difect fixed costs }\\\text { Advertising } & \$ 3,000 & \$ 2,000 & \$ 1,000 \\\text { Supervision } & 5,000 & 5,000 & 5,000\\\end{array}$
Common fixed costs
Inspecting products $(\$ 10,000)$
Materials handling $(\$ 4,000)$
Customer service $(\$ 5,000)$
Plant depreciation $(\$ 6,000)$
General administration $(\$ 8,000)$ When Montrose converted over to ABC it discovered the following: $The following data pertains to the Montrose Company's three products: \begin{array}{lrrr}&M&N&O\\ \text { Unit sales per month } & \underline{9,000} & \underline{14,000} & \underline{8,000} \\\\ \text { Selling price per unit } & \$ 6.00 & \$ 11.25 & \$ 7.50 \\ \text { Variable costs per unit } & 3.00 & 9.00 & 7 . 0 0\\ \text { Unit contribution margin } & \$ 3.00 & \$ 2.25 & \$ 0.50 \\ \text { Batches } & 5 & 10 & 5 \\ \text { Setups } & 6 & 3 & 1\\\text { Difect fixed costs }\\ \text { Advertising } & \$ 3,000 & \$ 2,000 & \$ 1,000 \\ \text { Supervision } & 5,000 & 5,000 & 5,000\\ \end{array} Common fixed costs Inspecting products (\$ 10,000) Materials handling (\$ 4,000) Customer service (\$ 5,000) Plant depreciation (\$ 6,000) General administration (\$ 8,000) When Montrose converted over to ABC it discovered the following: The operating income for Montrose would be A) $8,500. B) $9,000. C) $19,000. D) $27,000.$ The operating income for Montrose would be

Understand the concept of production possibility frontiers (PPFs) and their shapes.

Identify factors that lead to the movement between points on the PPF.

Analyze the impact of opportunity costs in the production of goods.

Understand the implications of economic growth and technological advancements on the PPF.

Definitions:

Financial Compensation

Payment given to a person or entity as reimbursement for loss, injury, or suffering.

Injured on the Job

Pertains to an employee suffering physical or mental harm or illness as a direct result of their work or work environment.

Bona Fide Occupational Qualification

An employment qualification that is reasonably necessary for the normal operation of a particular business or enterprise, and can justify discrimination based on characteristics like religion, nationality, or gender in certain circumstances.

Discriminate

To treat someone or something differently or unjustly, often based on characteristics like race, age, gender, etc., rather than individual merit.