Dapper Hat Makers Is in the Business of Designing and Producing

question 154

Multiple Choice

Dapper Hat Makers is in the business of designing and producing specialty hats. The material used for derbies costs $4.50 per unit, and Dapper pays each of its two full-time employees $250 per week. If Employee A makes 15 derbies in one week, what is the variable cost per derby? (Round to two decimal places where necessary.)

• A) $4.50
• B) $15.00
• C) $16.67
• D) $21.17

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Definitions:

Puffery

Exaggerated or hyperbolic promotion of a product or service that is subjective and not meant to be taken literally.

Lanham Act

A federal statute in the United States that governs trademarks, service marks, and unfair competition, providing protection for brand identities and combating misleading practices.

Misleading Food Advertisements

Advertising practices that falsely represent the quality, nutritional value, or origin of food products, potentially deceiving consumers.

FDA

The Food and Drug Administration, a U.S. federal agency responsible for regulating food, drugs, medical devices, and cosmetics.