For the Problem Data Set Below, What Is the Northwest

question 48

Multiple Choice

For the problem data set below, what is the northwest corner allocation to the cell Source 3-Destination 3?
$$\begin{array} { | l | r | r | r | r | } \hline \text { COSTS } & \text { Dest. 1 } & { \text { Dest. 2 } } & { \text { Dest. 3 } } & { \text { Supply } } \\\hline \text { Source 1 } & 2 & 1 & 3 & 30 \\\hline \text { Source 2 }& 4 & 2 & 1 & 40 \\\hline \text { Source 3 } & 3 & 8 & 6 & 20 \\\hline \text { Demand } & 15 & 50 & 25 & 90 \backslash 90 \\\hline\end{array}$$

• A) 0
• B) 15
• C) 20
• D) 35
• E) 45

---

Definitions:

Fixed Manufacturing Overhead

Fixed manufacturing overhead consists of expenses that do not change with the level of production, such as rent, depreciation, and salaries of permanent staff.

Special Order

A one-time order that is not part of the company's usual ongoing operations, often requiring a deviation from standard pricing and production procedures.

Future Costs

Future costs are expected or estimated costs that will be incurred in the performance of future activities or business operations, guiding budgeting and planning processes.

Sunk Cost

Costs that have already been incurred and cannot be recovered.