Answer the Following Questions Using the Information Below

question 41

Multiple Choice

Answer the following questions using the information below:
Argon Corp. had capacity to produce 15,000 units of L3 using 30,000 kg of direct materials. Argon produced 14,750 units of L3 by processing 27,500 kg of direct materials. Conversion cost per unit is $7.50. Argon can add or reduce manufacturing capacity in increments of 2,500 kgs.
-What would be the cost savings if Argon decides to reduce manufacturing capacity by 2,500 kgs?

• A) $9,375
• B) $3,750
• C) $1,875
• D) $7,500

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Definitions:

Separate Entities

Independent elements or organizations not connected to each other, often used in legal and business contexts.

William James

An American philosopher and psychologist who is considered the "Father of American psychology," known for his work on the principles of psychology.

Functionalism

A theory in psychology that emphasizes the importance of how mental and behavioral processes function to enable individuals and species to adapt to their environments.

Human Mind

The totality of conscious and unconscious mental processes and activities in a human being.