Figure 7-2

question 105

Multiple Choice

Figure 7-2.Steller Manufacturing has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places small, frequent orders and the non-JIT distributor tends to place larger, less frequent orders. Both types of distributors purchase the same product. The customer activities and costs for the previous quarter are found below:

-Refer to Figure 7-2. Calculate the activity rate for selling goods.

• A) $3,625 per sales call
• B) $3,550 per sales call
• C) $2,200 per sales call
• D) $4,800 per sales call
• E) $9,400 per sales call

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Definitions:

Lithium-soap Grease

A type of lubricant made from lithium soap, known for its high resistance to water and its use in automotive and industrial applications to reduce friction and protect against corrosion.

API GL-5

A classification of gear lubricant specified by the American Petroleum Institute, indicating it’s suitable for high-pressure conditions and hypoid gears, commonly used in automotive axles.

Alcohol Evaporator Canister

A component in an air brake system that removes moisture from the air lines using an alcohol-based solution to prevent freezing.

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The action of a compressor moving fluid or gas through a system, such as in refrigeration or HVAC systems.