Answer the Following Questions Using the Information Below:
Mitsufugi Company

question 97

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 cost effect of the price-recovery component?

• A)$30 000 U
• B)$29 000 F
• C)$1000 F
• D)$30 900 U

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Definitions:

Deceptive Clicking

The act of misleading users into clicking on online advertisements or links through false promises or misrepresentations, often to generate fraudulent revenue.

Interactive Ads

Advertising formats that encourage viewer engagement or interaction, often through digital or online platforms, to enhance message retention and response rates.

Rich Media

Online advertising that includes advanced features like video, audio, or other elements that encourage viewer interaction.

Online Advertising Options

Various methods and platforms available for advertising products, services, or brands on the internet, including social media ads, search engine marketing, and display ads.