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

question 148

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 160 customers in 2017 and 165 customers in 2018.
What is the net effect on operating income as a result of the price-recovery component? (Round any intermediary calculations to two decimals and your final answer to the nearest dollar.)

• A) $1,292,700 F
• B) $1,545,000 U
• C) $1,292,700 U
• D) $1,545,000 F

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Definitions:

Type 2 Diabetes Mellitus

A chronic condition characterized by high blood sugar levels due to the body's inability to effectively use insulin.

Treatment Plan

A comprehensive outline devised by healthcare professionals detailing all aspects of therapy to be given to a patient, including drugs, procedures, and other treatments.

Client Cooperation

In a healthcare or service delivery context, it refers to the willingness and active participation of clients or patients in their treatment plans and interactions with service providers.

Implementation Phase

The stage in a project or plan where strategies are executed and actions are taken to achieve the set objectives.