Miller Company Produces Speakers for Home Stereo Units The Variable Distribution Costs Are for Transportation to the Retail

question 91

Multiple Choice

Miller Company produces speakers for home stereo units.The speakers are sold to retail stores for $30.Manufacturing and other costs are as follows: $\begin{array}{lrlr}\text { Variable costs per unit: } & & \text { Fixed costs per month: } \\\text { Direct materials } & \$ 9.00 & \text { Factory overhead } & \$ 120,000 \\\text { Direct labour } & 4.50 & \text { Selling and admin. } & \underline{60,000} \\\text { Factory overhead } & 3.00 & \text { Total } & \$ 180,000 \\\text { Distribution } & 1.50 & & \\\text { Total } & \$ 18.00 & &\end{array}$
The variable distribution costs are for transportation to the retail stores.The current production and sales volume is 20,000 per year.Capacity is 25,000 units per year.
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The speakers are currently unpackaged.Packaging them individually would increase costs by $1.20 per unit.However,the units could then be sold for $33.00.All other information remains the same as the original data.What is the effect on profits if Miller Company packages the speakers?

• A)decrease of $24,000
• B)decrease of $36,000
• C)increase of $36,000
• D)no change

Identify and categorize personal and employment records.

Calculate net worth and understand its importance in personal finance.

Understand and calculate savings ratios for personal financial analysis.

Recognize the significance of budgeting in managing finances and reaching financial goals.

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Definitions:

Bargain Collectively

The process by which employees negotiate contracts with their employers regarding wages, benefits, hours, and other conditions of employment through their representatives.

Congress Of Industrial Organizations

A federation of unions that organized workers in industrial unions in the United States and Canada from 1935 until 1955.

American Federation Of Labor

A national federation of labor unions in the United States, founded in 1886, known for advocating for better working conditions, wages, and hours for workers.

Skilled Workers

Individuals who have acquired through training or experience the technical skills necessary for performing specific, complex job tasks.