Lit Furniture Manufactures a Small Table and a Large Table

question 78

True/False

Lit Furniture manufactures a small table and a large table. The small table sells for $900, has variable costs of $750 per table, and takes 7.5 labor hours to manufacture. The large table sells for $1,500, has variable costs of $900, and takes 15 direct labor hours to manufacture. The small table has a lower contribution margin per unit, but a higher contribution margin per direct labor hour.

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Definitions:

Opportunities

Situations or contexts that present potential for growth, improvement, or success.

Idea Generation

The process of creating, developing, and communicating new concepts or solutions, often seen as the first step in the development of new products or services.

Opportunity Identification

The process of recognizing and evaluating new business opportunities in the marketplace.

Effectuating Opportunities

Taking action to transform creative ideas into viable opportunities through experimentation, partnerships, and embracing uncertain outcomes.