Horton and Associates Produces Two Products Named BigBlast and LittleBlastThe Production Lines for Both Products Are Highly Automated, So

The Answer of Horton and Associates Produces Two Products Named BigBlast and LittleBlastThe Production Lines for Both Products Are Highly Automated, So

Horton and Associates Produces Two Products Named BigBlast and LittleBlastThe Production Lines for Both Products Are Highly Automated, So

The Answer of Horton and Associates Produces Two Products Named BigBlast and LittleBlastThe Production Lines for Both Products Are Highly Automated, So

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Horton and Associates Produces Two Products Named BigBlast and LittleBlast

question 61

Multiple Choice

Horton and Associates produces two products named BigBlast and LittleBlast. Last month 4,000 units of BigBlast and 1,000 units of LittleBlast were produced and sold. Following are average prices and costs for last month: $\begin{array}{lrr}&\text { BiqBlast }&\text { LittleBlast }\\\text { Selling price } & \$ 100 & \$ 200 \\\text { Direct materials } & (25) & (75) \\\text { Direct labour } & (15) & (35) \\\text { Variable overhead } & (5) & (30) \\\text { Product line fixed costs } & (10) & (40) \\\text { Corporate fixed costs } & (25) & (25) \\\text { Average margin per unit }&\$20&\$5\end{array}$ The production lines for both products are highly automated, so large changes in production cause very little change in total direct labour costs. Workers who are classified as direct labour monitor the production line and are permanent employees who regularly work 40 hours per week. All costs other than "corporate fixed costs" listed under each product line could be avoided if the product line were dropped.
The following qualitative factors are relevant to Horton's decision:
I. Would dropping one product affect the sales of the other product?
II. Are all product line fixed costs completely avoidable?
III. Would layoffs affect other workers' morale?

Definitions:

Gender Equity

The state of fairness and equality between genders, where opportunities and rights are not determined or hindered by gender.

Leadership Labyrinth

refers to the complex and challenging journey that leaders must navigate, often filled with obstacles and barriers, particularly for underrepresented groups.

Style and Effectiveness

Pertains to the manner in which leadership or management is executed and its proficiency in achieving desired outcomes or objectives.

Cross-Pressures

Conflicting influences or demands from different sources, often leading to stress or difficulty in making decisions.