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

question 142

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 selling goods?

Identify and analyze market failures.

Describe conditions for allocative efficiency in markets.

Recognize the efficiency outcomes of competitive markets.

Understand public goods and their characteristics.

Definitions:

Constructive Feedback

The process of providing specific, supportive, and actionable advice with the aim of helping someone improve or develop.

Foundation of Trust

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Generalized Tendencies

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Conflict of Interest

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