Production Data for the Number of Hours Required Per Unit

question 26

Multiple Choice

Production data for the number of hours required per unit for making the Droid and iPhone versions of cell phone components by Bizzer, a high-tech manufacturing firm, is given below.Suppose the plant decides to make the maximum number of iPhone components possible and reach the rest of its capacity by making Droid phones.How many of each type of phone will it make?

Monthly Product

• A)375 iPhone units and 625 Droid units
• B)500 iPhone units and 500 Droid units
• C)1000 iPhone units and 1000 Droid units
• D)625 iPhone units and 375 Droid units

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Definitions:

Owner's Equity

The residual interest in the assets of a business after deducting liabilities, representing the owner's claim against the company's assets.

Accumulated Depreciation

The cumulative depreciation of an asset up to a single point in its life, representing the wear and tear or usage.

Depreciating Equipment

The process of allocating the cost of tangible assets over its useful life, reflecting wear and tear, and loss of value over time.

Service Revenue

Income earned by a company for the services it has provided to customers.