Answer the following questions using the information below:
Merrill Company makes a household appliance with model number X800. 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 X800 units that can be produced. The industry market size for appliances increased 5% from 2011 to 2012. The following additional data are available for 2011 and 2012:
-What is the cost effect of the growth component for direct materials?
Definitions:
Supply Chain Objectives
The strategic goals set by a company to optimize its supply chain operations, which can include improving efficiency, reducing costs, and enhancing customer satisfaction.
Industry
A classification that refers to a group of companies that are related based on their primary business activities.
Local Storage
A method of storing data or products in a nearby location for quick access and reduced transportation time, enhancing efficiency and responsiveness.
Delivery Cost
Pertains to the expenses incurred in transporting goods from one location to another, including shipping fees, fuel charges, and labor.
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