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

question 120

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 an objective of the learning and growth perspective?

• A)increase return on investment
• B)increase market share in the high-end appliance market
• C)improve order delivery time
• D)development of new products or services
• E)increase customer satisfaction

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Definitions:

Zinc-Plated Bolt

A bolt coated with a thin layer of zinc to protect against corrosion, commonly used in various construction and manufacturing applications.

MRP Tables

Tables utilized in Material Requirements Planning that detail the schedule of components needed, their quantities, and the timing for manufacturing or assembly processes.

Bill of Material

A comprehensive list detailing all the raw materials, parts, components, and assemblies needed to produce one unit of a product.

Lot-For-Lot

A production and inventory control strategy that matches the order quantity exactly with the demand, without carrying any excess inventory.