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

question 139

Multiple Choice

Use the information below to answer the following question(s) .
Following a strategy of product differentiation, Barry Company makes an XX 300. Barry Company presents the following data for the years 1 and 2.
Barry Company produces no defective units but it wants to reduce direct materials usage per unit of XX 300 in year 2. Manufacturing conversion costs in each year depend on production capacity defined in terms of XX 300 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. Neither conversion costs or customer-service costs are affected by changes in actual volume. Barry Company has 23 customers in year 1 and 25 customers in year 2. The industry market size for high-end appliances increased 5% from year 1 to year 2.
-Which of the following is a measure of the internal business perspective?

• A) operating income growth from charging higher margins for XX 300
• B) market share in the high-end appliance market
• C) production cycle time
• D) number of employees trained in quality management
• E) real-time feedback capacity

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