Following a Strategy of Product Differentiation, Izzy's Limited Company Makes

question 134

Multiple Choice

Following a strategy of product differentiation, Izzy's Limited Company makes a high-end Appliance, XT15. Izzy's Limited presents the following data for the years 2017 and 2018:

Izzy's Limited produces no defective units but it wants to reduce direct materials usage per unit of XT15. Manufacturing conversion costs in each year depend on production capacity defined in terms of XT15 units that can be produced. Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support. Izzy's Limited had 140 customers in 2017 and 145 customers in 2018.
What is operating income in 2018?

• A) $7,463,500
• B) $15,841,900
• C) $9,212,000
• D) $15,921,775

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Definitions:

Thin Body Image

Thin body image refers to the societal ideal and promotion of a slender physique as the preferred or desirable body shape, which can influence individual self-perception and body satisfaction.

Cultural Acceptance

The recognition and inclusion of diverse cultural practices, values, and norms within a society, promoting social harmony and understanding.

Talcott Parsons

An American sociologist known for his work in developing sociological theory and for his contributions to the functionalist perspective in sociology.

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Social roles focused on emotional support, nurturing, and maintaining relationships within families or groups.