Use the Information Below to Answer the Following Question(s)

question 54

Multiple Choice

Use the information below to answer the following question(s) .
Marguerite Inc.. expects to sell 20,000 pool cues for $20.00 each. Direct materials costs are $2.00, direct manufacturing labour is $12.00, and manufacturing overhead is $0.80 per pool cue. Each pool cue requires 0.5 kilograms (kg) of material which is all added at the start of production. The units in work-in-process beginning and ending inventory were half complete as to direct labour and manufacturing overhead costs; the units in beginning inventory are completed before new units are started.. Each pool cue requires one hour of direct labour, and manufacturing overhead is allocated based on direct labour hours. The following inventory levels are expected to apply to 2012:

-How many kilograms of material will need to be purchased for 2012 production and inventory requirements?

• A) 11,500 kg
• B) 10,700 kg
• C) 10,300 kg
• D) 10,500 kg
• E) 10,000 kg

Learn how the net present value is influenced by the interest rate.

Comprehend the impact of interest rates on consumer behavior and purchasing decisions.

Grasp the difference between real and nominal interest rates, including the role of inflationary premium.

Recognize the importance of economic efficiency in relation to capital expansion and utilization.

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Definitions:

Rule Of 70

A rule estimating the number of years required to double an investment or population at a particular annual growth rate, calculated by dividing 70 by that growth rate.

Interest Rate

The financial charge for borrowing resources, represented as a percentage of the initial loan amount.

Account

A record that keeps track of financial transactions, investments, or the financial state of an individual, institution, or company.

Utility Function

A mathematical representation used in economics to model satisfaction or preference that a consumer derives from the consumption of goods and services.