Fraser Manufacturing Had No Work in Process at the Beginning

question 3

Multiple Choice

Fraser Manufacturing had no work in process at the beginning of a month. It transferred 6,300 units to finished goods during the month, and 500 units were still in process at the end of the month. Equivalent production for the month was 6,620 units. At what stage of completion were the unfinished units at the end of the month?

• A)36 percent
• B)64 percent
• C)95 percent
• D)46 percent

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Definitions:

Demand Curve

A graphical representation in economics that shows the relationship between the price of a good and the quantity of that good consumers are willing and able to purchase at varying price levels.

Homothetic Preferences

A consumer preference structure in which utility functions display constant returns to scale, meaning relative consumption patterns do not change as income levels change.

Substitution Effect

The change in consumption patterns due to a change in relative prices of goods, leading individuals to substitute cheaper goods for more expensive ones.

Compensated Demand Function

A demand function that adjusts for changes in income to show how quantities demanded by consumers change in response to a price change while keeping utility constant.