Answer the Following Questions Using the Information Below:
Following a Strategy

question 117

Multiple Choice

Answer the following questions using the information below:
Following a strategy of product differentiation, Arseniq Company makes a high-end Appliance, XT15. Arseniq presents the following data for the years 2014 and 2015:
$\begin{array}{lrr}&2014&2015\\\text { Units of XT15 produced and sold } & 50,000 & 52,500 \\\text { Selling price } & \$ 500 & \$ 550 \\\text { Direct materials (square feet) } & 150,000 & 153,750 \\\text { Direct materials costs per square foot } & \$ 50 & \$ 55 \\\text { Manufacturing capacity in units of XT15 } & 62,500 & 62,500\\\text { Total conversion costs } & \$ 6,250,000 & \$ 6,875,000 \\\text { Conversion costs per unit of capacity } & \$ 100 & \$ 110 \\\text { Selling and customer-service capacity (customers) } & 150 & 150 \\\text { Total selling and customer-service costs } & \$ 2,250,000 & \$ 2,343,750 \\\text { Selling and customer-service capacity cost per customer } & \$ 15,000 & \$ 15,625\end{array}$ Arseniq produces no defective units but it wants to reduce direct materials usage per unit of XT15. Manufacturing conversion costs in each year depend on production capacity defined in terms of XT15 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. Arseniq had 140 customers in 2014 and 145 customers in 2015.
-What is the net effect on operating income as a result of the growth component?

• A) $1,118,750 F
• B) $875,000 F
• C) $875,000 U
• D) $1,118,750 U

Differentiate between basic and applied research in psychology.

Identify key historical figures and movements in the development of psychology.

Apply the goals of psychology to real-world scenarios and psychological research.

Comprehend the role of hypotheses in psychological research.

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Definitions:

Diagnose

The process of identifying a disease or condition from its signs and symptoms.

Myelography

An X-ray visualization of the spinal cord after the injection of a radioactive contrast medium or air into the spinal subarachnoid space (between the second and innermost of three membranes that cover the spinal cord). This test can reveal tumors, cysts, spinal stenosis, or herniated disks.

Spinal Cord

A long, thin, tubular structure made up of nervous tissue, which extends from the brainstem down the back, transmitting neural signals between the brain and the body.

Compressions

The act of applying pressure to something or the reduction in volume of a material or data.