Partridge Company Provided the Following Information Regarding Its One and Only

question 7

Multiple Choice

Partridge Company provided the following information regarding its one and only product-ice skates. $\begin{array}{ll}\text { Direct materials used } & \$ 200,000 \\\text { Direct labor } & \$ 0,000 \\\text { Fixed overhead } & 100,000 \\\text { Fixed s elling and administrative costs } & 150,000\\\text { Variable overhead } & 20,000 \\\text { Variable selling and administrative } & 60,000 \\\text { Selling unit price } & 75 \\\text { Units produced and sold } & 10,000\end{array}$ The difference in manufacturing cost per unit between the absorption approach and contribution approach is:

• A) $10 higher if absorption cost is used
• B) $36 higher if contribution is used
• C) $10 higher if contribution cost is used
• D) $36 higher if absorption is used

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Definitions:

Problem Space Hypothesis

The idea that problem solving is isomorphic to a search through a mental graph, with nodes corresponding to all possible states of affairs of a problem and connections corresponding to legal moves.

Incomplete Representations

Mental or symbolic representations that lack some components or details of the actual object or concept.

Mental Set

A psychological tendency to approach situations in a certain way because that method worked previously.

Incubation Effect

A phenomenon where stepping away from a problem temporarily can lead to a solution unexpectedly emerging into consciousness later.