Figure 7-1

question 138

Multiple Choice

Figure 7-1.The receiving department of Owen has three activities: unloading, counting goods, and inspecting. Unloading requires a forklift that is leased for $15,000 per year. The forklift is used only for unloading. The fuel for the forklift is $2,000 per year. Inspection requires special testing equipment that has a depreciation of $500 per year and an operating cost of $1,000 per year. Receiving has four employees who each have an average salary of $35,000 per year. The work distribution matrix for the receiving personnel is as follows:

-Refer to Figure 7-1. Calculate the cost of unloading.

• A) $50,500
• B) $56,000
• C) $52,000
• D) $54,000

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Definitions:

Systematic Risk

The inherent risk that affects the entire market or economy, and cannot be avoided through diversification.

Unsystematic Risk

The danger linked to a particular business or sector, which can be lessened by spreading investments across different areas.

Well-Diversified Portfolio

A collection of investments across various asset classes and industries intended to reduce risk through the principle of diversification.

Historical Relationship

A reference to the way entities or variables have interacted or correlated with one another in the past.