Answer the Following Questions Using the Information Below

question 41

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:

-What is operating income for 2011?

• A)$450,000
• B)$1,000,000
• C)$750,000
• D)$700,000

Understand the decision-making process, including recognizing problems or opportunities, and developing and implementing solutions.

Differentiate between programmed and nonprogrammed decisions and their applications within an organization.

Identify characteristics and impacts of leadership styles (autocratic, participative) on decision-making and organizational direction.

Understand the steps involved in the strategic planning process and the implementation of strategic plans.

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Definitions:

Production Costs

Expenses incurred by a business in the process of creating a good or service, including raw materials, labor, and overhead.

Elasticity

The measure of how much the quantity demanded or supplied of a product changes in response to a change in its price.

Resource Demand

The desire and ability of businesses or individuals to acquire resources or inputs required to produce goods and services.

Resource Price

Resource price is the cost associated with acquiring the inputs needed for production, including labor, raw materials, and capital.