Hooper Corporation Produces and Sells Two Models of Vacuum Cleaners

question 113

Multiple Choice

Hooper Corporation produces and sells two models of vacuum cleaners, Standard and Deluxe. The company records show the following monthly data relating to these two products:
$\begin{array} {| l | r | r | } \hline & \text { Standard } & \text { Deluxe } \\\hline \text { Selling price per unit } & \$ 150 & \$ 165 \\\hline \text { Variable production costs } & \$ 120 & \$ 126 \\\hline \begin{array} { l } \text { Variable selling expense per } \\\text { unit }\end{array} & \$ 16 & \$ 13 \\\hline \begin{array} { l } \text { Expected monthly sales in } \\\text { units }\end{array} & 600 & 1,200 \\\hline \begin{array} { l } \text { Total monthly fixed cost } \\\text { (common in both) }\end{array} & & \$ 15,000 \\\hline\end{array}$


-If the expected monthly sales in units were divided equally between the two models (900 Standard and 900 Deluxe) ,where would the break-even level of sales be as compared to the expected sales mix?

• A) The same as with the expected sales mix.
• B) Higher than with the expected sales mix.
• C) Lower than with the expected sales mix.
• D) Cannot be determined with the available data.

Appreciate the role of natural selection in not acting directly on genotypes but through phenotypes.

Understand the implications of nonrandom mating on genetic variation and population structure.

Recognize the role of genetic drift and the founder effect in shaping population genetics.

Identify different forms of natural selection (stabilizing, directional, disruptive) and their effects on populations.

---

Definitions:

Conversion Cost

Conversion cost is the sum of direct labor and manufacturing overhead costs incurred to convert raw materials into finished goods.

Product Cost

The expenses incurred to create a product, including direct materials, direct labor, and manufacturing overhead.

Direct Materials

Raw materials that can be directly traced to the manufacturing of a product.

Period Cost

Costs that are expensed in the period in which they are incurred, as opposed to being capitalized or included in the cost of goods sold.