White, Inc

question 20

Multiple Choice

White, Inc. produces a chemical product whose primary component is purchased on credit and any discounts are always taken. The following material and labour elements make up the costs of the product: Purchase price for material $30 per litre
Freight and handling $130 per 100 litres
Each container of the chemical product contains 5.7 quarts of material. During the process 5% of the material is lost due to waste. Each container of product also requires 1.2 hours of labour. Each day 2 hours are taken for set-up, cleaning, and breaks. Also, the wage rate is $15 per hour and fringes/payroll taxes are 20% of wages. Clients can take a 3% discount if they pay invoices within 10 days; otherwise, the entire invoice amount is due within 30 days. 1 litre equals 4 quarts.
The standard quantity of material per finished unit is:

• A)6)0 quarts
• B)5)4 quarts
• C)5)7 quarts
• D)5)415 quarts

---

Definitions:

Blood Sugar

The concentration of glucose in the blood, which is a primary source of energy for the body's cells.

Hunger Pangs

Sensations of discomfort or weakness caused by the need for food.

Satiety

The state of being satisfied; fullness.

James And Lange

Theorists who proposed an emotion theory suggesting physiological arousal precedes the experience of emotion.