Aaker Company, Which Has Only One Product, Has Provided the Following

question 89

Multiple Choice

Aaker Company, which has only one product, has provided the following data concerning its most recent month of operations:
$\begin{array} { | l | r | } \hline \text { Selling price } & \$ 99 \\\hline \text { Units in beginning inventory } & 0 \\\hline \text { Units produced } & 6,300 \\\hline \text { Units sold } & 6,000 \\\hline \text { Units in ending inventory } & 300 \\\hline \text { Variable costs per unit: } & \\\hline \text { Direct materials } & \$ 12 \\\hline \text { Direct labour } & \$ 42 \\\hline \text { Variable manufacturing overhead } & \$ 6 \\\hline \text { Variable selling and administrative } & \$ 6 \\\hline \text { Fixed costs: } & \\\hline \text { Fixed manufacturing overhead } & \$ 170,100 \\\hline \text { Fixed selling and administrative } & \$ 24,000 \\\hline\end{array}$



-What is the unit product cost for the month under variable costing?

• A) $60.
• B) $66.
• C) $87.
• D) $93.

Identify how tariffs influence domestic prices and quantities in international markets.

Evaluate the implications of free trade versus protectionist policies.

Determine the role of government revenue in the context of tariffs.

Understand the concept of deadweight loss in trade policies.

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Definitions:

Positive Statement

An objective statement that can be tested, based on factual information and data, without any value judgments.

Industrial Society

A society characterized by a reliance on mechanized labor to create material goods, often associated with a significant shift from agricultural to industrial economies.

Normative Question

A question that addresses what ought to be, focusing on subjective judgments or prescriptions about economic policies.

Normative Statement

A statement expressing a value judgment about what ought to be, rather than stating objective facts or describing what currently exists.