Answer the Following Questions Using the Information Below:
Jamberry Preserves

question 195

Multiple Choice

Answer the following questions using the information below:
Jamberry Preserves currently makes jams and spreads and a variety of decorative jars used for packaging.An outside supplier has offered to supply all of the needed decorative jars.For this make-or-buy decision,a cost analysis revealed the following avoidable unit costs for the decorative jars:
$$\begin{array} { l r } \text { Direct materials } & \$ 0.25 \\\text { Direct labour } & 0.03 \\\text { Unit-related support costs } & 0.10 \\\text { Batch-related support costs } & 0.12 \\\text { Product-sustaining support costs } & 0.22 \\\text { Facility-sustaining support costs } & 0.28 \\ { \text { Total cost per jar } } & \underline{ \$ 1.00}\end{array}$$
-The relevant cost per jar is:

• A)$0.72 per jar.
• B)$1.00 per jar.
• C)$0.38 per jar.
• D)$0.28 per jar.

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Definitions:

Production Machinery

Production machinery encompasses the mechanical devices and equipment used in the manufacturing process to produce goods.

Capacity Management

The practice of planning and controlling the resources of an organization or system to ensure optimal performance.

Product Flexibility

The ability of a company to modify its products to meet customer preferences or market demands.

Workforce Schedule

The planning of working hours and assignments for employees to ensure operational efficiency.