Answer the Following Questions Using the Information Below:
Tiger Pride

question 138

Multiple Choice

Answer the following questions using the information below:
Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed as follows:
$\begin{array}{lrr}&\text { T-SHIRTS }&\text { SWEATSHIRTS }\\\text { Production and sales volume } & 60,000 \text { units } & 35,000 \text { units } \\\text { Selling price } & \$ 16.00 & \$ 29.00 \\\text { Direct material } & \$ 2.00 & \$ 5.00 \\\text { Direct labor } & \$ 4.50 & \$ 7.20 \\\text { Manufacturing overhead } & \$ 2.00 & \$ 3.00\\\text { Gross profit } & \$ 7.50 & \$ 13.80 \\\text { Selling and administrative } & \$ 4.00 & \$ 7.00 \\\text { Operating profit } & \$ 3.50 & \$ 6.80\end{array}$ What is projected operating income if direct materials costs of T-Shirts increase to $4.00 per unit and direct labor costs of Sweatshirts increase to $8.20 per unit?
-Under the revised ABC system,the activity-cost driver rate for the supervision activity is ________.

• A) $2.58
• B) $2.40
• C) $2.24
• D) $1.16

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Definitions:

Hierarchy Of Needs

A motivational theory in psychology comprising a five-tier model of human needs, from physiological to self-actualization, proposed by Abraham Maslow.

Maslow

Maslow refers to Abraham Maslow, a psychologist best known for formulating the hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.

Basic Needs

Fundamental requirements for human survival and well-being, such as food, water, shelter, and safety, which are essential for maintaining life.

Rogers

A psychologist known for developing the person-centered approach to therapy, emphasizing the human potential for growth, self-understanding, and psychological healing.