Answer the Following Question(s)using the Information Below

question 157

Multiple Choice

Answer the following question(s) using the information below.Beta Shoe Ltd.manufactures only one type of shoe and has two divisions, the Sole Division, and the Assembly Division.The Sole Division manufactures soles for the Assembly Division, which completes the shoe and sells it to retailers.The Sole Division "sells" soles to the Assembly Division.The market price for the Assembly Division to purchase a pair of soles is $20.(Ignore changes in inventory.) The per unit fixed costs are based on a production of 60,000 pairs of shoes.Sole's costs per pair of soles are:
Assembly's costs per completed pair of shoes are:

-If the Assembly Division sells 100,000 pairs of shoes at a price of $60 a pair to customers, what is the company's operating income?

• A)$4,400,000
• B)$4,020,000
• C)$3,900,000
• D)$2,600,000
• E)$2,400,000

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Definitions:

Worker Fatigue

Physical or mental exhaustion experienced by workers, which can reduce efficiency, productivity, and safety in the workplace.

Allowance Factor

A factor applied in planning and design processes to account for potential deviations from standard or expected conditions, ensuring extra capacity or tolerance.

Time Study

A systematic observation and recording of times it takes to perform a specific task, used for setting standards and improving efficiency.

Sample Size

The number of observations or data points selected from a larger population for the purpose of statistical analysis.