Answer the Following Questions Using the Information Below

question 153

Multiple Choice

Answer the following questions using the information below:
Following a strategy of product differentiation, Loftus Company makes a high-end Appliance, AP15. Loftus Company presents the following data for the years 2011 and 2012:
Loftus Company produces no defective units but it wants to reduce direct materials usage per unit of AP15 in 2012. Manufacturing conversion costs in each year depend on production capacity defined in terms of AP15 units that can be produced. Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support. Loftus Company has 46 customers in 2011 and 50 customers in 2012. The industry market size for high-end appliances increased 5% from 2011 to 2012.
-What is the revenue effect of the growth component?

• A)$220,000 F
• B)$420,000 F
• C)$400,000 F
• D)$200,000 F

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Definitions:

Satisfying Occupation

A job or career that provides fulfillment, meaning, and pleasure to the individual, often aligning with their interests, values, and capabilities, contributing to their overall happiness and well-being.

Use Of Force

The application of physical coercion by individuals or authorities to achieve a directive, which can range from law enforcement to personal defense.

Signals Weakness

Indicates moments or actions that reveal a lack of strength, confidence, or effectiveness.

Overt Display

A conspicuous or obvious exhibition of behavior, emotions, or characteristics that is easily observable.