Use the Information Below to Answer the Following Question(s)

question 145

Multiple Choice

Use the information below to answer the following question(s) .Craft Concept manufactures small tables in its Processing Department.Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit.Conversion costs are incurred evenly throughout the production cycle.Before inspection, some units are spoiled due to non-detectable materials defects.Inspection occurs at the end of the process.Spoiled units generally constitute 5 percent of the good units.Data for December are as follows:

-What is the number of total spoiled units?

• A)1,600 units
• B)2,000 units
• C)2,700 units
• D)3,600 units
• E)4,500 units

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Definitions:

Price

The amount of funds expected, essential, or submitted in reimbursement for something.

Apples

A type of fruit that is grown on apple trees, known for its sweet taste and nutritional benefits, often consumed fresh or used in various dishes.

Bananas

Commonly refers to a type of fruit, but in economic terms, it could relate to the market dynamics or trade aspects of agricultural products.

Budget Line

A graphical representation of all possible combinations of two goods that an individual can afford given the prices of the goods and the individual's income.