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

question 97

Multiple Choice

Use the information below to answer the following question(s) .
Following a strategy of product differentiation, Luke Company makes a high-end Appliance, AP15. Luke Company presents the following data for the years 1 and 2.
Luke Company produces no defective units but it wants to reduce direct materials usage per unit of AP15 in year 2. 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. Neither conversion costs or customer-service costs are affected by changes in actual volume. Luke Company has 46 customers in year 1 and 50 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) return on investment
• B) market share in the high-end appliance market
• C) timely delivery
• D) production cycle time
• E) number of employees trained in quality management

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Definitions:

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Adrenal Gland

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Impulsive Job-hopping

The habit of frequently changing jobs without considerable thought or planning, often based on immediate desires rather than long-term career goals.