Answer the Following Questions Using the Information Below

question 9

Multiple Choice

Answer the following questions using the information below:
Wingard Company makes a household appliance with model number X200. 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 X200 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 the cost effect of the price-recovery component?

• A)$30,500 F
• B)$31,500 U
• C)$2,500 F
• D)$33,000 U

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Definitions:

Invariant Relationship

describes a consistent and unchanging association between variables regardless of different conditions or operations.

Stimuli

External factors or events that provoke a physiological or psychological response.

Linear Perspective

A cue for distance based on the fact that parallel lines seem to converge as they get farther away from the viewer.

Texture Gradients

A depth cue in visual perception, where the gradual change in appearance of a texture signals increasing distance from the observer.