Following a Strategy of Product Differentiation,Izzy's Limited Company Makes a High-End

question 45

Multiple Choice

Following a strategy of product differentiation,Izzy's Limited Company makes a high-end Appliance,XT15.Izzy's Limited presents the following data for the years 2017 and 2018:

Izzy's Limited 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.Izzy's Limited had 160 customers in 2017 and 165 customers in 2018.
What is the cost effect of the growth component? (Round any intermediary calculations to two decimals and your final answer to the nearest dollar. )

• A)$280,500 U
• B)$1,449,700 U
• C)$1,449,700 F
• D)$280,500 F

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Definitions:

Government Positions

Roles or jobs within the structure of government, ranging from elected officials to public service employees, responsible for governing and administering public policy.

Bailey v. Drexel Furniture Company

A 1922 United States Supreme Court decision that ruled the Child Labor Tax Law of 1919 unconstitutional, which had imposed a tax on companies using child labor.

Child Labor

The employment of children in any work that deprives them of their childhood, interferes with their ability to attend regular school, and that is mentally, physically, socially or morally dangerous and harmful.

Mandatory Retirement

A policy or practice that requires employees to retire at a certain age, regardless of their personal or professional circumstances.