Whaler Utilizes Automated Machines to Sew Sails for Its Whaling

question 110

Multiple Choice

Whaler utilizes automated machines to sew sails for its whaling ships. The manufacturing records indicate the Model Z7B sail uses $4,140 of fabric, requires 3 direct labor hours to finish and tie off threads and 8 hours of machine sewing time. The direct labor rate averages $14.00 per hour. Manufacturing overhead is added to the product cost of a sail based on a rate of $45 per machine hour. The company applies a 30% markup on cost. What is the sales price of a Model Z7B sail?

• A)$4,542.00.
• B)$5,382.00.
• C)$5,612.10.
• D)$5,904.60.

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Definitions:

Secondary Market

The marketplace where investors buy and sell securities they own to other investors or traders, after the original issuance of the security.

Issue Securities

The process by which corporations, governments, or other entities raise money by issuing stocks, bonds, or other financial instruments to investors.

Stock Prices

The current price at which a share of a company is traded on the stock market.

Company's Profits

The financial gain generated by a business, determined by subtracting total expenses from total revenue.