Answer the Following Questions Using the Information Below

question 86

Multiple Choice

Answer the following questions using the information below:
Meale Company makes a household appliance with model number X500. The goal for 2012 is to reduce direct materials usage per unit. No defective units are currently produced. Manufacturing conversion costs depend on production capacity defined in terms of X500 units that can be produced. The industry market size for appliances increased 10% from 2011 to 2012. The following additional data are available for 2011 and 2012:

-Which strategy is Meale's Corporation pursuing?

• A)Product differentiation, because the units produced and sold increased.
• B)Product differentiation, because total conversion costs decreased.
• C)Cost leadership, because direct material costs per square foot increased.
• D)Cost leadership, because the selling price decreased.

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Definitions:

Sigma Bonds

The strongest type of covalent chemical bond, formed by the direct overlap of atomic orbitals, with the electrons shared in an area centered on a line running between the nuclei.

Pi Bonds

Covalent chemical bonds formed by the side-to-side overlap of atomic orbitals, allowing for electron sharing in double and triple bonds.

Hybridization

A concept in chemistry that describes the mixing of atomic orbitals into new hybrid orbitals, suitable for the pairing of electrons to form chemical bonds.

Atom

The basic unit of a chemical element, consisting of a nucleus of protons and neutrons, with electrons orbiting this nucleus.