Figure 12-3 Quinn Has Capacity to Make 950,000 Zippers Per Year, but \\
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question 59

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 is the total benefit for Style?

• A) $243,000
• B) $292,500
• C) $168,300
• D) $69,000
• E) $81,000

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Definitions:

Expression

An expression in mathematics is a combination of symbols that can represent a number, variable, operation, or a combination thereof, without an equality sign.

X

Often used to represent an unknown variable in algebraic equations or the horizontal axis in Cartesian coordinate systems.

Y

Often used to denote the dependent variable or the output value in a function, commonly represented on the vertical axis in a Cartesian coordinate system.

Positive Exponents

Powers of a number that signify how many times the number is multiplied by itself.