Dapper Hat Makers Is in the Business of Designing and Producing

question 104

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 the employees make 50 derbies in one week, what is the fixed cost per derby? (Round to two decimal places where necessary.)

• A) $4.50
• B) $5.00
• C) $10.00
• D) $14.50

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Definitions:

Understocking

The condition of having insufficient inventory to meet demand, leading to potential lost sales and customer dissatisfaction.

Integrated Supply Chain

A holistic approach to supply chain management that emphasizes the coordination and synchronization of all elements of the supply chain, from raw materials to end customer.

Financials

Pertains to the monetary aspects and performance of a business, including income, expenses, and profitability.

Products And Services

The combination of physical goods and intangible services that are offered by a business to satisfy the needs and wants of consumers.