Table 3-6 Assume That Maya and Miguel Can Switch Between Producing Mixers

question 160

Multiple Choice

Table 3-6
Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate.

-Refer to Table 3-6.Which of the following combinations of mixers and toasters could Maya produce in 40 hours?

• A) 1 mixers and 7 toasters.
• B) 2 mixers and 5 toasters.
• C) 2.5 mixers and 4 toasters.
• D) 3 mixers and 4 toasters.

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Definitions:

Incremental Income

The additional income that is generated as a result of a specific business decision or activity.

Incremental Costs

Additional costs associated with producing one extra unit of a product or delivering an additional service.

Direct Materials

Raw materials that are directly used in the manufacturing of a product and can be easily traced to the finished product.

Direct Labor

The cost of labor that can directly be associated with the production of goods or services.