(Table) Using the Information in the Table, Assume the Consumer

question 83

Multiple Choice

(Table) Using the information in the table, assume the consumer has a weekly budget of $3; the price of a root beer is $1 and the price per candy bar is $0.50. The consumer maximizes utility by purchasing
$\begin{array}{l}\hline \quad \quad \quad {\text { Root Beer }} \quad \quad \quad \quad \quad \quad \quad \quad {\text { Candy Bars }} \\\begin{array}{|c|c|c|c|}\hline \text { Quantity } & \text { Total Utility } & \text { Quantity } & \text { Total Utility } \\\hline 0 & 0 & 0 & 0 \\\hline 1 & 60 & 1 & 80 \\\hline 2 & 110 & 2 & 150 \\\hline 3 & 150 & 3 & 200 \\\hline 4 & 180 & 4 & 230 \\\hline 5 & 200 & 5 & 240 \\\hline 6 & 210 & 6 & 240 \\\hline\end{array}\end{array}$

• A) three root beers.
• B) two root beers and two candy bars.
• C) zero root beer and six candy bars.
• D) one root beer and four candy bars.

Interpret standard cost cards and their components.

Apply standard costing methods to compute product costs.

Analyze the effects of favorable and unfavorable variances on income.

Describe the steps involved in the effective management of variance analysis.

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Definitions:

Glucose

A simple sugar and an important energy source in living organisms, also one of the main products of photosynthesis.

Bacterium's Resource

Bacterium's Resource refers to the nutrients and environmental conditions that support the growth and survival of bacteria.

Niche

The totality of an organism’s adaptations, its use of resources, and the lifestyle to which it is fitted in its community; how an organism uses materials in its environment as well as how it interacts with other organisms; also called ecological niche. See fundamental niche and realized niche.

Resource Partitioning

The reduction of competition for environmental resources such as food that occurs among coexisting species as a result of each species’ niche differing from the others in one or more ways.