Use the Following to Answer Questions

question 159

Multiple Choice

Use the following to answer questions:
-(Table: The Market for Fried Twinkies) Look at the table The Market for Fried Twinkies. The government decides to tax fried Twinkies at a rate of $0.30 per Twinkie and collect that tax from the producers. After paying the tax, producers will receive _____ per Twinkie, and they will sell _____ Twinkies after the tax.

• A) $1.10; 3,000
• B) $1.20; 5,000
• C) $1.30; 7,000
• D) $1.50; 5,000

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Definitions:

Work In Process

Items or materials that are in the process of being manufactured but have not yet been completed.

Direct Labor Account

An account that tracks the cost of workers who are directly involved in the production of goods or services.

Lean Manufacturing

A systematic method for waste minimization within manufacturing systems without sacrificing productivity.

Zero Defects

A management philosophy aiming at reducing and ideally eliminating defects and errors in manufacturing and service processes.