Kyekyeku Company Retails Two Models of a Product: Model X

question 167

Multiple Choice

Kyekyeku Company retails two models of a product: Model X and Model Y. It considers both products to be close substitutes. The following data relate to the company's operations for last year: $\begin{array} { | l | r | r | r | } \hline & \text { Model X } & \text { Model Y } & \text { Total } \\\hline \text { Sales in Units: } & & & \\\hline \text { Budget } & 1,000 & 1,000 & 2,000 \\\hline \text { Actual } & 1,008 & 1,092 & 2,100 \\\hline \text { Contribution Margins per Unit: } & & & \\\hline \text { Budget } & \$ 30 & \$ 40 & \\\hline \text { Actual } & \$ 25 & \$ 38 & \\\hline \text { Market Volume in Units: } & & & \\\hline \text { Budget } & & & 40,000 \\\hline \text { Actual } & & & 52,500 \\\hline\end{array}$
- What was the market share variance for last year?

• A) $16,537.50 unfavourable.
• B) $18,375.00 favourable.
• C) $18,375.00 unfavourable.
• D) $21,875.00 favourable.

Distinguish between short-run and long-run costs, including variable and fixed costs.

Explore the implications of input substitution on production costs and the environment.

Understand the concept of economies of scale and its relation to cost minimization strategies.

Evaluate cost minimization strategies in practical scenarios with fixed input proportions.

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Autonomous Morality

A stage in moral development where individuals recognize that rules and laws are created for the welfare of the population and can judge actions by their intentions rather than just their consequences.

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