A Company Sells Two Products with Information as Follows Products Are Made by Machine

question 42

True/False

A company sells two products with information as follows:
$$\begin{array} { | l | r | r | } \hline & \text { A } & \text { B } \\\hline \text { Sales price per unit } & \$ 14 & \$ 23 \\\hline \text { Variable cost per unit } & \$ 7 & \$ 13 \\\hline\end{array}$$ Products are made by machine.Six units of product A can be made with five machine hours and three units of product B can be made with 0.8 machine hour.If there are no constraints on production or sales of either product,then the company should emphasize sales of product B.

Evaluate the role of digital technologies in facilitating time and place utility for customers.

Interpret how digital environments enable the customization and personalization of products and services.

Recognize the importance of customer-design interfaces in product customization online.

Understand the concept and application of collaborative filtering in digital marketing strategies.

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Definitions:

Materials Quantity Variances

The difference between the actual quantity of materials used in production and the expected quantity, measured in cost.

World Class Company

A business that achieves high standards in its operations, services, and products, often excelling in areas like customer satisfaction, innovation, and efficiency, and recognized globally for its excellence.

Standard Cost Accounting System

A cost accounting system that assigns preset costs to products or services, used for budgeting and controlling expenses.

Ideal Standards

Benchmark levels of performance set under perfect operating conditions, used for budgeting and measuring efficiency.