Answer the Following Questions Using the Information Below:
Buildz Manufacturing

question 218

Multiple Choice

Answer the following questions using the information below:
Buildz Manufacturing currently produces 1,000 tables per month. The following per unit data for 1,000 tables apply for sales to regular customers:
$\begin{array}{lr}\text { Direct materials } & \$ 50 \\\text { Direct manufacturing labor } & 10 \\\text { Variable manufacturing overhead } & 15 \\\text { Fixed manufacturing overhead } & \underline{30} \\{\text { Total manufacturing costs }} & \$ 105\end{array}$
-What is the per unit cost when producing 3,000 tables?

• A) $58.33
• B) $175.00
• C) $85.00
• D) $125.45

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Definitions:

Delivery Gap

The difference between customer expectations for service delivery and the actual service delivered.

Service Failure

A situation where a service does not meet a customer's expectations, leading to dissatisfaction or complaints.

Inseparability of Services

Refers to the concept that services are produced and consumed at the same time, meaning the provider and the customer must be present for the transaction to occur.

Satisfaction Guarantees

A promise made by a company to refund or replace a product if a customer is not satisfied with the purchase, intended to reduce purchase risk and increase customer trust.