Moustache Manufacturing Has Two Classes of Distributors: JIT Distributors and Non-JIT

question 52

Multiple Choice

Moustache Manufacturing has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places small, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders. Both types of distributors purchase the same product. The customer activities and costs for the previous quarter are found below:
$$\begin{array} { l r r } & \text { JIT } & \text { Non-JIT } \\\text { Sales Orders } & 300 & 20 \\\text { Sales Calls } & 25 & 25 \\\text { Service Calls } & 150 & 75 \\\text { Average Order Size } & 100 & 1,000 \\\text { Manufacturing Cost/Unit } & \$ 50 & \$ 50\end{array}$$ $$\begin{array}{l}\text { Customer Costs: }\\\begin{array} { l l } \text { Processing Sales Orders } & \$ 200,000 \\\text { Selling Goods } & \$ 120,000 \\\text { Servicing Goods } & \$ 150,000 \\\text { Total } & \$ 470,000\end{array}\end{array}$$
-Refer to the Figure.What is the activity rate for servicing goods?

• A)$650 per service call
• B)$667 per service call
• C)$675 per service call
• D)$2,000 per service call

---

Definitions:

Classical Conditioning

A conditioning method where two stimuli are paired together repeatedly; a response that initially occurs in response to the second stimulus eventually occurs in response to the first stimulus.

Cerebellum

A region of the brain that plays a significant role in motor control, and it may also be involved in some cognitive functions.

Schemas

Cognitive structures that help individuals organize and interpret information, based on their accumulated knowledge and experiences.

Short-Term Memory

A memory system that temporarily holds information for processing.