Wollongong Company Has a Current Production Level of 20 000

question 211

Multiple Choice

Wollongong Company has a current production level of 20 000 units per month.Unit costs at this level are:
$$\begin{array} { l r } \text { Direct materials } & \$ 0.25 \\\text { Direct labour } & 0.40 \\\text { Variable overhead } & 0.15 \\\text { Fixed overhead } & 0.20 \\\text { Marketing - fixed } & 0.20 \\\text { Marketing/distribution - variable } & 0.40\end{array}$$
Current monthly sales are 18 000 units.Jim Company has contacted Wollongong Company about purchasing 1500 units at $2.00 each.Current sales would not be affected by the one-time-only special order and variable marketing/distribution costs would not be incurred on the special order.What is Wollongong Company's change in operating profits if the special order is accepted?

• A)$400 increase in operating profits
• B)$1800 decrease in operating profits
• C)$1800 increase in operating profits
• D)$400 decrease in operating profits

Understand Hofstede’s framework of national culture and its dimensions.

Recognize the importance of values and their influence on attitudes, behaviors, and organizational culture.

Understand key concepts and terminology related to personality traits, including the "Big Five."

Recognize the significance and components of diversity and inclusion within organizations.

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Definitions:

Cycle Time

The maximum time that a product is allowed at each workstation.

Design Capacity

The theoretical maximum output of a system in a given period under ideal conditions.

Theoretical Maximum

The highest possible outcome or performance level under ideal conditions with no constraints or limitations.

Rated Capacity

The maximum amount of output or processing that a machine, system, or facility can consistently achieve under normal conditions.