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

question 39

Multiple Choice

Use the information below to answer the following question(s) .Following a strategy of product differentiation, Barry Company makes an XX 300.Barry Company presents the following data for the years 1 and 2. Barry Company produces no defective units but it wants to reduce direct materials usage per unit of XX 300 in year 2.Manufacturing conversion costs in each year depend on production capacity defined in terms of XX 300 units that can be produced.Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support.Neither conversion costs or customer-service costs are affected by changes in actual volume.Barry Company has 23 customers in year 1 and 25 customers in year 2.The industry market size for high-end appliances increased 5% from year 1 to year 2.
-Referring to Barry Company, which of the following is a measure of the customer perspective?

• A)operating income growth from charging higher margins for XX 300
• B)yield
• C)production cycle time
• D)improving manufacturing processes
• E)customer satisfaction rating

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Definitions:

Real Returns

The profit or income generated from an investment, adjusted for inflation, to reflect the true purchasing power of the earnings.

Purchasing Power

The amount of goods or services that can be bought with a unit of currency.

Yield to Maturity

The total return anticipated on a bond if it is held until the date it matures, accounting for interest payments and the repayment of principal.