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Scenario 2.2
Use the following to answer the questions.
EXperience Limited is a company which offers tours and vacations that include participation in an extreme sport,such as hang-gliding,bungee jumping,skydiving,and motocross.Adrian Moss,EXperience Limited's owner,has just finished developing the strategic plan,including marketing objective of growing his customer base by 15% during the coming year.He believes that the best way of reaching that objective is to promote to the college-aged student.In the past,the majority of his sales have been to males under the age of 29,participating in hang-gliding and bungee jumping at various tourist locations.He wants to expand his skydiving and motocross tours,but isn't sure whether or not the expansion will be profitable.He currently has a database containing all the customers who have gone on a hang-gliding or bungee jumping vacation with his company.
-Refer to Scenario 2.2.The information in EXperience Limited's database could be best used to develop
Direct Labor-Hours
Direct labor-hours are the total time workers spend creating a product or providing a service, directly correlated to the volume of production.
Variable Overhead
Indirect production costs that vary with the level of output, such as utilities or indirect materials used in the production process.
Direct Materials
The raw materials that are directly used in the manufacturing process of a product and are easily traceable to that product.
Direct Labor-Hours
A measure of the work done by manufacturing employees directly involved in the production process, typically quantified in hours.
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