Horton and Associates Produces Two Products Named BigBlast and LittleBlast

question 109

Multiple Choice

Horton and Associates produces two products named BigBlast and LittleBlast. Last month 4,000 units of BigBlast and 1,000 units of LittleBlast were produced and sold. Following are average prices and costs for last month: BigBlast LittleBlast
Selling price $100 $200
Direct materials (25) (75)
Direct labour (15) (35)
Variable overhead (5) (30)
Product line fixed costs (10) (40)
Corporate fixed costs (25) (25)
Average margin per unit $ 20 $( 5)
The production lines for both products are highly automated, so large changes in production cause very little change in total direct labour costs. Workers who are classified as direct labour monitor the production line and are permanent employees who regularly work 40 hours per week. All costs other than "corporate fixed costs" listed under each product line could be avoided if the product line were dropped.
Using only the information provided above, Horton could make several types of decisions. Possible decisions include:
I. Keep or drop
II. Product emphasis
III. Special order
IV. Constrained resources

• A)I and II only
• B)I and III only
• C)I, II, and IV only
• D)III and IV only

Identify the effects of ROPES on expectations, stress, job satisfaction, and retention.

Describe the purpose, content, and effectiveness of employee orientation programs.

Understand proactive tactics for newcomers in the socialization process.

Comprehend the types of support received by female protégés.

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Definitions:

Expected Holding-Period Return

The total return anticipated on a bond if it is held until the end of its lifetime or holding period, including interest payments and capital gain or loss.

Probability Distribution

An analytical function that describes every probable value and its likelihood for a random variable over a predefined interval.

Stock of the Economy

The stock of the economy refers to the total value of all assets and investments available within an economy at a given time.

Expected Standard Deviation

A measure of the amount by which an asset's return is expected to deviate from its average return, used as an indicator of the risk associated with the asset.