Use the Following Information for the Next 4 Questions

question 76

Multiple Choice

Use the following information for the next 4 questions.
White, Inc. produces a chemical product whose primary component is purchased on credit and any discounts are always taken. The following material and labor elements make up the costs of the product: Each container of the chemical product contains 5.7 quarts of material. During the process 5% of the material is lost due to waste. Each container of product also requires 1.2 hours of labor. Each day 2 hours are taken for set-up, cleaning, and breaks. Also, the wage rate is $15 per hour and fringes/payroll taxes are 20% of wages. Clients can take a 3% discount if they pay invoices within 10 days; otherwise, the entire invoice amount is due within 30 days. 1 gallon equals 4 quarts.
-The standard hours per finished unit is

• A) 1.2 hours
• B) 1.5 hours
• C) 1.6 hours
• D) 1.45 hours

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Definitions:

Price of Contact Lenses

The cost at which contact lenses are sold, determined by factors like brand, technology, supply, and demand.

Supply of Contact Lenses

The total amount of contact lenses that manufacturers are willing and able to sell at a given price level.

Law of Demand

The principle that, all else being equal, as the price of a good or service increases, consumer demand for the good or service will decrease and vice versa.

Package of Kale

A commercial bundle or container of the leafy green vegetable kale, typically prepared for retail sale.