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

question 17

Multiple Choice

The following data pertains to the Montrose Company's three products: $$\begin{array} { l r r r } & \mathrm { M } & \mathrm { N } & \mathrm { O } \\\text { Unit sales per month } & \underline { 9,000 } & \underline { 14,000 } & \underline { 8,000 } \\\text { Selling price per unit } & \$ 6.00 & \$ 11.25 & \$ 7.50 \\\text { Variable costs per unit } & \underline { 3.00 } & \frac { 9.00 } { 2.00 } & \underline { 7.00 } \\\text { Unit contribution margin } & \$ 3.00 & \$ 2.25 & \$ 0.50 \\\text { Batches } & 5 & 10 & 5 \\\text { Setups } & 6 & 3 & 1 \\\text { Direct fixed costs } & & & \\\text { Advertising } & \$ 3,000 & \$ 2,000 & \$ 1,000 \\\text { Supervision } & 5,000 & 5,000 & 5,000 \\\text { Common fixed costs } & & & \\\text { Inspecting products } ( \$ 10,000 ) & & & \\\text { Materials handling } ( \$ 4,000 ) & & & \\\text { Customer service } ( \$ 5,000 ) & & & \\\text { Plant depreciation } ( \$ 6,000 ) & & & \\\text { General administration } ( \$ 8,000 ) & & &\end{array}$$ When Montrose converted over to ABC it discovered the following: $$\begin{array} { l c l } \text { Inspecting products } & - & \begin{array} { l } 20 \% \text { of the inspection activity was unused. The } \\\text { inspections used were based on the number of batches } \\\text { produced. }\end{array} \\\text { Materials handling } & - & \begin{array} { l } 10 \% \text { of the materials handling activity was unused. } \\\text { The materi als handling activi ty used was based on the } \\\text { number of production runs. }\end{array} \\\text { Customer service } & - & \begin{array} { l } 50 \% \text { of the customer service activity was unused. The } \\\text { usage was given as follows: M } 1,000 , N 1000,0500 \\\text { facility level cost } \\\end{array}\\\text { General administration }&-&\text { facility level cost }\end{array}$$ The product margin for product M using ABC would be

• A)$9,000.
• B)$19,000.
• C)$13,840.
• D)$27,000.

Recognize the benefits and limitations of various research designs in developmental psychology.

Understand the role of genetics in determining sex and its implications for prenatal development.

Comprehend the significance of environmental influences on physical development.

Identify the scope of developmental psychology, including biological, psychological, and behavioral changes over the lifespan.

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Definitions:

Space-Based Media

Media content and services delivered via satellite or other space-based technologies, offering communication and entertainment on a global scale.

Time-Based Media

Art forms that are experienced over time, such as video, film, audio, and digital media, which require the element of time for their full appreciation and understanding.

Marshall McLuhan

A Canadian philosopher and communication theorist best known for coining the expression "the medium is the message" and for his studies on media theory.

Media Endorsement

The support or approval of a product, service, or idea by a recognized media outlet, often influencing public opinion and behavior.