Answer the Following Questions Using the Information Below:
Mitsufugi Company

question 124

Multiple Choice

Answer the following questions using the information below:
Mitsufugi Company makes a kitchen appliance with model number KA450.The goal for 2018 is to reduce direct materials usage per unit.No defective units are currently produced.Manufacturing conversion costs depend on production capacity defined in terms of KA450 units that can be produced.The industry market size for appliances increased 5% from 2017 to 2018.The following additional data are available for 2017 and 2018:
$$\begin{array} { l r r } & 2017 & 2018 \\\text { Units of KA450 produced and sold } & 10000 & 10300 \\\text { Selling price } & \$ 150 & \$ 145 \\\text { Direct materials (square metres) } & 30000 & 29000 \\\text { Direct material costs per square metres } & \$ 12 & \$ 13 \\\text { Manufacturing capacity for KA450 (units) } & 12500 & 12000 \\\text { Total manufacturing conversion costs } & \$ 250000 & \$ 240000 \\\text { Manufacturing conversion costs per unit of capacity } & \$ 20 & \$ 20\end{array}$$
-What is the revenue effect of the price-recovery component?

• A)$47 500 F
• B)$51 500 U
• C)$50 000 F
• D)$2500 U

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Definitions:

Patterning

The recurring or organized arrangement of elements in a particular sequence or design.

Construct

Bipolar quality or continuum used to classify people.

Selective Perception

Process of seeing, hearing, or making sense of the world around us based on such factors as our personality, beliefs, attitudes, hopes, fears, and culture, as well as what we like and do not like.

Punctuation

Process of making sense out of stimuli by grouping, dividing, organizing, separating, and categorizing information.