Answer the Following Questions Using the Information Below:
the Mt

question 108

Multiple Choice

Answer the following questions using the information below:
The Mt Tambourine Company manufactures several different products.Unit costs associated with Product SK2040 are as follows:
$$\begin{array} { l r } \text { Direct materials } & \$ 60 \\\text { Direct manufacturing labour } & 10 \\\text { Variable manufacturing overhead } & 18 \\\text { Fixed manufacturing overhead } & 32 \\\text { Sales commissions (2\% of sales) } & 4 \\\text { Administrative salaries } & \underline { 16 } \\\quad \text { Total } & \$ 140\end{array}$$
-What are the variable costs per unit associated with Product SK2040?

• A)$88
• B)$22
• C)$18
• D)$92

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Definitions:

Incremental Change

A gradual, step-by-step approach to modifying processes, products, or services, often as part of a strategy to manage risk or introduce innovation.

Transformational Change

A profound or radical shift that fundamentally alters the nature or direction of an entity.

Modest Change

A minor adjustment or slight modification to a process, system, or product.

Gradual Change

Incremental alterations, modifications, or developments occurring slowly over a period of time.