A Factory Is Operating at Less Than 100% Capacity

question 155

Multiple Choice

A factory is operating at less than 100% capacity. Potential additional business will not use up the remainder of the plant capacity. Given the following list of costs, which one should be ignored in a decision to produce additional units of product?

• A) Variable selling expenses
• B) Fixed factory overhead
• C) Direct labor
• D) Contribution margin of additional units

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Definitions:

Genital Warts

A sexually transmitted infection characterized by small bumps on the genital areas, caused by certain types of human papillomavirus (HPV).

High-Grade

Refers to cells or tissues that display a high level of abnormality under microscopic examination, often indicating a more aggressive type of cancer.

Cervical Intraepithelial Neoplasia

A precancerous condition in which abnormal cells are found on the surface of the cervix, which can potentially develop into cervical cancer.

Underserved Populations

Groups of people who have less access to healthcare and other essential services compared to the broader population.