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Use the information below to answer the following question(s) .Following a strategy of product differentiation, Luke Company makes a high-end Appliance, AP15.Luke Company presents the following data for the years 1 and 2. Luke Company produces no defective units but it wants to reduce direct materials usage per unit of AP15 in year 2.Manufacturing conversion costs in each year depend on production capacity defined in terms of AP15 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.Luke Company has 46 customers in year 1 and 50 customers in year 2.The industry market size for high-end appliances increased 5% from year 1 to year 2.
-What is the Luke Company's revenue effect of price-recovery component?
Population Proportion
The fraction of individuals in a population having a particular attribute, representing a particular kind of population parameter.
Confidence Interval
A range of values, derived from sample statistics, that is likely to contain the true value of an unknown population parameter with a specified level of confidence.
Population Proportion
A fraction or percentage that represents part of a whole or group within a population that shares a particular characteristic.
Formula
A symbolic representation of a principle or a set of mathematical relations, often used to solve problems or to define scientific laws.
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