Figure 12-3 Quinn Has Capacity to Make 950,000 Zippers Per Year, but \\
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question 8

Multiple Choice

Figure 12-3 $\begin{array}{ll}\text { Direct materials } & \$ 0.23 \\\text { Direct labor } & \$ 0.20 \\\text { Variable overhead } & \$ 0.95 \\\text { Fixed overhead } & \$ 1.32 \\\text { Total } & \$ 2.70\end{array}$ Quinn has capacity to make 950,000 zippers per year, but due to a soft market, only plans to produce and sell 620,000 zippers next year. LeatherStuff currently buys zippers from an outside supplier for $3.50 each (the same price that Style receives) .
-Refer to Figure 12-4. Assume that Style and LeatherStuff have agreed on a transfer price of $3.25. What are the total cost savings for LeatherStuff?

• A) $22,500
• B) $315,000
• C) $292,500
• D) $69,000
• E) $81,000

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Definitions:

Decimal Places

The quantity of numbers located to the right of a decimal point in a numeral, denoting its level of accuracy.

Decrease Decimals

The action of reducing the number of digits to the right of the decimal point in a numerical value.

Decimal Places

The number of digits following the decimal point in a number, indicating its fractional part with a precision level.

Decimal Places

Refers to the number of digits to the right of the decimal point in a number, indicating the precision of the value.