Table 17-5 Two Discount Superstores (Ultimate Saver and SuperDuper Saver) in a in a Growing

question 43

Multiple Choice

Table 17-5
Two discount superstores (Ultimate Saver and SuperDuper Saver) in a growing urban area are interested in expanding their market share.Both are interested in expanding the size of their store and parking lot to accommodate potential growth in their customer base.The following game depicts the strategic outcomes that result from the game.Growth-related profits of the two discount superstores under two scenarios are reflected in the table below.
Table 17-5
​
-Refer to Table 17-5.For which store is the dominant strategy to increase the size of its store and parking lot

• A)SuperDuper Saver, but not Ultimate Saver
• B)Ultimate Saver, but not SuperDuper Saver
• C)both SuperDuper Saver and Ultimate Saver
• D)neither SuperDuper Saver and Ultimate Saver

---

Definitions:

Factory Overhead Rate

The ratio of total indirect manufacturing costs to some base, commonly used to allocate overhead costs to products.

Direct Materials

Raw materials that are directly traceable and allocate to the manufacture of specific goods or products.

Direct Labor Rate

The cost per hour for labor directly involved in manufacturing a product or providing a service.

Machine Hours

A measure of production output or activity level, using the total hours that machinery is operated as the unit of measure.