Tom and Jerry Have Two Tasks to Do All Day

question 54

Multiple Choice

Tom and Jerry have two tasks to do all day: set traps and build bombs.If Tom spends all day setting traps,he will have set 16 traps.If he instead devotes his day to building bombs,Tom will build 4 bombs.If Jerry spends his day setting traps,he will set 14 traps;if he spends the day building bombs,he will build 7 bombs.The opportunity cost of one bomb is _______ for Tom and ________ for Jerry.Therefore Tom should specialize in ______________.

• A)4 traps;2 traps;traps
• B)16 traps;14 traps;traps
• C)4 traps;2 traps;bombs
• D)16 traps;14 traps;bombs

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Definitions:

Manufacturing Process

The sequence of operations or methods used to convert raw materials into finished goods.

Cost Of Goods Sold

Costs directly connected to the creation of a company's sold goods, encompassing both materials and labor.

Finished Goods Inventory

This represents the stock of completed products that are ready to be sold but have not been sold yet.

WIP Inventory

Work in Process Inventory, representing the cost of unfinished goods in the production process.