Answer the Following Questions Using the Information Below:
Tiger Pride

question 158

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,overhead costs per unit for the Sweatshirts will be ________.

• A) $1.39 per unit
• B) $1.60 per unit
• C) $2.19 per unit
• D) $2.47 per unit

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Definitions:

Experimental Research

A method of research that tests a hypothesis through the manipulation of variables and controlled conditions to determine cause and effect.

Correlated

A term indicating a statistical relationship between two or more variables, where changes in one variable are associated with changes in another.

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Actions that increase the likelihood of contracting sexually transmitted infections (STIs) or unwanted pregnancy.

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The various ways in which media can influence people's thoughts, feelings, and behaviors.