Use the Following Information for the Next 3 Questions

question 2

Multiple Choice

Use the following information for the next 3 questions.
(CMA) Table Top produces tables sold to discount stores. The table tops are manufactured in the U.S. by Table Top, but the table legs are manufactured in a plant in Nogales, Mexico. The assembly department attaches the four purchased table legs to the table top. It takes 20 minutes of labor to assemble a table. The company follows a policy of producing enough tables to insure that 40% of next month's sales are in the finished goods inventory. Table Top also purchases sufficient raw materials to insure that raw materials inventory is 60% of the following month's scheduled production. Table Top's sales budget in units for the next quarter is as follows:
-Assume that Table Top will produce 1,800 units in the month of September 20x5. How many employees will be required for the assembly department? (Fractional employees are acceptable since employees can be hired on a part-time basis. Assume a 40 hour work week and a 4 week month.)

• A) 15 employees
• B) 3.75 employees
• C) 600 employees
• D) 1.5 employees

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Definitions:

Pure Monopolists

Firms that are the sole providers of a product or service in a market, facing no direct competition.

Economic Profits

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, representing a measure of efficiency and profitability.

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different customers, based on what the seller believes the customers will pay.

Antitrust Regulations

Laws designed to enhance competition in the market by preventing monopolistic practices and promoting fair and free competition.