TwoShaft Inc

question 59

Multiple Choice

TwoShaft Inc. manufactures a wide variety of parts for recreational boating, including boat engines. The component is purchased by OEM (Original Equipment Manufacturers) such as Mercury and Honda, for use in the larger and more powerful outboards. The units sell for $660, and sales volume averages 32,000 units per year. Recently, TwoShaft's major competitor lowered the price of the equivalent part to $590. The market was very competitive, and TwoShaft realized it had to meet the new price or lose significant market share. The controller assembled the following data for the most recent year: The target cost for maintaining current market share and profitability is (round to nearest cent) :

• A)$466.61.
• B)$417.12.
• C)$396.61.
• D)$390.61.
• E)$460.61.

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Definitions:

Information

Data that is processed, organized, structured or presented in a given context to make it meaningful or useful.

Peg-Word System

A mnemonic technique for memorizing lists by associating items with a pre-memorized list of words or numbers.

Visually Associating

The process of forming connections or associations between visual images to facilitate remembering or understanding.

Mental Images

are representations in a person's mind of the physical world outside of that person, which can include visual, auditory, or other sensory experiences.