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

question 127

Multiple Choice

Use the information below to answer the following question(s) .Following a strategy of product differentiation, Barry Company makes an XX 300.Barry Company presents the following data for the years 1 and 2. Barry Company produces no defective units but it wants to reduce direct materials usage per unit of XX 300 in year 2.Manufacturing conversion costs in each year depend on production capacity defined in terms of XX 300 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.Barry Company has 23 customers in year 1 and 25 customers in year 2.The industry market size for high-end appliances increased 5% from year 1 to year 2.
-________ measures the changes in operating income attributed solely to an increase in the quantity of output between years one and two.

• A)The growth component
• B)The price-recovery component
• C)The productivity component
• D)The cost leadership component
• E)The strategy component

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Definitions:

Epigenetic

Relating to changes in gene expression caused by mechanisms other than changes in the underlying DNA sequence.

Preoperational Stage

The second stage in Piaget's theory of cognitive development, occurring from ages 2 to 7, marked by rapid language development and symbolic thinking.

Egocentrism

A cognitive bias where individuals perceive, understand, and interpret the world primarily from their own perspective.

Language Development

The process by which children come to understand and communicate language during early childhood.