Use the Following Data for the Next 2 Questions

question 76

Multiple Choice

Use the following data for the next 2 questions:
A manufacturer operating with excess capacity has been asked to fill a special order at $7.25 per unit. The regular price is $10 per unit. No other use of the currently idle capacity can be found. The manufacturer's usual variable costs per unit are $3.50 for direct materials, $2.00 for direct labor, $1.00 for variable overhead, and $0.50 for sales commission. No sales commission would be paid on this special order. The average fixed overhead cost per unit is $0.25.
-Tyke, Inc. produces 2 products A and B, each requiring direct material and labor. Total labor available is 200 hours, and 300 pounds of material. Each unit of A sells for $10, and B sells for $15. Given the following linear programming information: What are the variable costs per unit for A and B?

• A) $4 and $15
• B) $14 and $19
• C) $6 and $10
• D) $7 and $14

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Definitions:

Exchange Rate

The value of one currency for the purpose of conversion to another, indicating how much one currency is worth in terms of the other.

Supply And Demand

Economic model of price determination in a market, where the quantity of a good supplied by producers and the quantity demanded by consumers depend on the price level.

Currencies

Systems of money in common use, particularly in a nation or economic region, serving as a medium of exchange.

Governments

Governments refer to the group or system of individuals governing an organized community, often a state.