Answer the Following Questions Using the Information Below:
Tiger Pride

question 138

Multiple Choice

Answer the following questions using the information below:
Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed as follows:
$\begin{array}{lrr}&\text { T-SHIRTS }&\text { SWEATSHIRTS }\\\text { Production and sales volume } & 60,000 \text { units } & 35,000 \text { units } \\\text { Selling price } & \$ 16.00 & \$ 29.00 \\\text { Direct material } & \$ 2.00 & \$ 5.00 \\\text { Direct labor } & \$ 4.50 & \$ 7.20 \\\text { Manufacturing overhead } & \$ 2.00 & \$ 3.00\\\text { Gross profit } & \$ 7.50 & \$ 13.80 \\\text { Selling and administrative } & \$ 4.00 & \$ 7.00 \\\text { Operating profit } & \$ 3.50 & \$ 6.80\end{array}$ What is projected operating income if direct materials costs of T-Shirts increase to $4.00 per unit and direct labor costs of Sweatshirts increase to $8.20 per unit?
-Under the revised ABC system,the activity-cost driver rate for the supervision activity is ________.

• A) $2.58
• B) $2.40
• C) $2.24
• D) $1.16

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Definitions:

Nontarget Pests

Species inadvertently affected by pesticides or other control measures meant for specific pests, often leading to ecological imbalances.

Transgenic Crops

Genetically modified plants in which one or more genes have been artificially inserted instead of the plant acquiring them through pollination.

Herbicide-Tolerant

Refers to plants that have been genetically modified to withstand the effects of herbicides, allowing farmers to control weeds without harming the crops.

Excess Herbicides

An overabundance of chemicals used to eliminate or manage unwanted plants, which can lead to environmental harm and resistance in plants.