Motorsports, Inc

question 23

Multiple Choice

Motorsports, Inc. builds two different types of motors. Model A has averaged 20,000 units annually, and Model B has average 30,000 units annually. The firm has historically used 80,000 direct labor hours and 10,000 hours of machine time per year to build Model A. Also, 150,000 annual direct labor hours have been allocated to Model B, along with 60,000 hours of annual machine time. What is the CPOPF planning factor for direct labor for Model A?

• A) 0.25
• B) 4.00
• C) 4.50
• D) 5.00
• E) 4.60

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Definitions:

Price Per Unit

The cost of a single unit of a product or service.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers, typically downward sloping.

Marginal Revenue

Marginal revenue is the additional income earned from selling one more unit of a good or service.

Total Revenue

The overall amount of money generated by a business from its activities, such as sales of goods or services, before any expenses are subtracted.