Farm Fresh Dairy Provided the Following Expense Information for May

question 186

Multiple Choice

Farm Fresh Dairy provided the following expense information for May: $$\begin{array} { | l | r | } \hline \text { Assembly-line warkers' wages } & \$ 72,000 \\\hline \text { Caps for milk bottles } & 2,000 \\\hline \text { Reconfigurig the assembly line } & 155,000 \\\hline \text { Custamer support hotline } & 8,000 \\\hline \text { Delivery expenses } & 17,000 \\\hline \text { Depreciation an factory equipment } & 81,000 \\\hline \text { Plastic milk bottles } & 52,000 \\\hline \text { Salaries of salespegple } & 63,000 \\\hline \text { Salaries of research scientists } & 84,000 \\\hline \text { Custamer toll-free order line } & 4,000 \\\hline\end{array}$$
-What is the total cost for the production category of the value chain?

• A)$538,000
• B)$52,000
• C)$207,000
• D)$374,000

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Definitions:

Expected Profit

The forecasted average of possible profits from an investment, considering probabilities of different outcomes.

Larger Contract

A contract agreement of significant size or value, often in the context of business or legal transactions.

Smaller Contract

A legally binding agreement between parties that is less extensive or lower in value or duration compared to other contracts.

Cash Prize

A monetary award given to an individual or group as recognition for achievement or as an incentive in competitions.