Answer the Following Questions Using the Information Below:
Ozfone Manufactures

question 13

Multiple Choice

Answer the following questions using the information below:
Ozfone manufactures high-tech mobile phones.Ozfone has a policy of adding a 30% mark-up to full costs and currently has excess capacity.The following information pertains to the company's normal operations per month:
$$\begin{array} { l r l } \text { Output units } & 20000 \text { phones } \\\text { Machine-hours } & 8000 \text { hours } \\\text { Direct manufacturing labour-hours } & 5000 \text { hours } \\& \\\text { Direct materials per unit } & \$ 25 \\\text { Direct manufacturing labour per hour } & \$ 20 \\\text { Variable manufacturing overhead costs } & \$ 175000 \\\text { Fixed manufacturing overhead costs } & \$ 425000 \\\text { Product and process design costs } & \$ 400000 \\\text { Marketing and distribution costs } & \$ 475000\end{array}$$
-For long-run pricing of the mobile phones,what price will MOST likely be used by Ozfone?

• A)$65.00
• B)$92.50
• C)$180.00
• D)$134.88

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Definitions:

Formal Leadership

Leadership that is based on an official position or authority within an organization or structure.

Organizational Objectives

Specific, measurable goals that a business aims to achieve in order to fulfill its organizational strategy and mission.

Effective Leadership Practices

Strategies and behaviors demonstrated by leaders to inspire, influence, and achieve organizational goals successfully.

Peter Drucker

A highly influential figure in the field of management theory and practice, known for his contributions to the concept of modern business management.