Use the Information Below to Answer the Following Question(s)

question 125

Multiple Choice

Use the information below to answer the following question(s) .Following a strategy of product differentiation, Luke Company makes a high-end Appliance, AP15.Luke Company presents the following data for the years 1 and 2. Luke Company produces no defective units but it wants to reduce direct materials usage per unit of AP15 in year 2.Manufacturing conversion costs in each year depend on production capacity defined in terms of AP15 units that can be produced.Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support.Neither conversion costs or customer-service costs are affected by changes in actual volume.Luke Company has 46 customers in year 1 and 50 customers in year 2.The industry market size for high-end appliances increased 5% from year 1 to year 2.
-Referring to Luke Company, which of the following is a measure of the financial perspective?

• A)reengineering process
• B)market share in the high-end appliance market
• C)order delivery time
• D)production cycle time
• E)operating income growth from changing higher margins

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Definitions:

Eighteenth Century

The period from 1701 to 1800, marked by significant developments in science, philosophy, and politics in Europe.

Tories

Originally a term for a political faction in Great Britain, often associated with conservatism and the defense of the monarchy against reformist pressures.

Whigs

The Whigs were a political faction and then a political party in the parliaments of England, Scotland, Great Britain, Ireland, and the United Kingdom, active between the 17th and 19th centuries, promoting constitutional monarchism and parliamentary power.

Monarch

A sovereign head of state, especially a king, queen, or emperor, who usually inherits their position by birth.