Reference: 09-01
the Following Are Wyeth Company's Unit Costs of Making

question 68

Multiple Choice

Reference: 09-01
The following are Wyeth Company's unit costs of making and selling an item at a volume of 10,000 units per month (which represents the company's capacity) : $$\begin{array} { | l | c | } \hline \text { Manufacturing: } & \\\hline \text { Direct materials } & \$ 1.00 \\\hline \text { Direct labour } & 2.00 \\\hline \text { Variable overhead } & 0.50 \\\hline \text { Fixed overhead } & 0.90 \\\hline \text { Selling and administrative: } & \\\hline \text { Variable } & 1.50 \\\hline \text { Fixed } & 0.60 \\\hline\end{array}$$ Present sales amount to 9,000 units per month. An order has been received from a customer in a foreign market for 1,000 units. The order would not affect current sales. Fixed costs, both manufacturing and selling and administrative, are constant within the relevant range between 8,000 and 10,000 units per month. The variable selling and administrative costs would have to be incurred for this special order as well as all other sales.
Assume direct labour is a variable cost.
-Assume the company has 50 units left over from last year which have small defects an which will have to be sold at a reduced price as scrap. This would have no effect on the company's other sales. What cost is relevant as a guide for setting a minimum price on these defective units?

• A)$5.00 per unit.
• B)$1.50 per unit.
• C)$3.50 per unit.
• D)$6.50 per unit.

Provide and guide towards resources for patients and their families about cancer.

Understand the importance of designing health care forms and interactions that are inclusive of all sexual orientations and gender identities.

Comprehend how equity-focused quality improvement strategies reduce disparities in health care.

Demonstrate cultural competence through effective communication and actions in a multicultural context.

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Definitions:

Entrepreneurial Transition

The process through which an entrepreneur shifts or adapts their role within the company as it grows or changes.

Erosion

The process of gradual wearing down or destruction of something, often referring to natural processes affecting land or material objects.

Rapid-Growth Firms

Companies that experience a significantly high rate of growth in revenue, size, or market share over a short period.

Power And Control

The ability to influence or direct people's behavior and the course of events.