Dapper Hat Makers Is in the Business of Designing and Producing

question 104

Multiple Choice

Dapper Hat Makers is in the business of designing and producing specialty hats. The material used for derbies costs $4.50 per unit, and Dapper pays each of its two full-time employees $250 per week. If the employees make 50 derbies in one week, what is the fixed cost per derby? (Round to two decimal places where necessary.)

• A) $4.50
• B) $5.00
• C) $10.00
• D) $14.50

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Definitions:

Quality

The degree to which a product, service, or process meets specified requirements, customer expectations, or industry standards.

Scope Of Work

A detailed document that outlines all of the work to be performed for a project, including tasks, deliverables, timelines, and performance criteria.

Self-Performing Work

Self-performing work involves a company or team directly executing tasks or functions using its own resources and personnel, rather than subcontracting.

Outsourcing

The practice of hiring third parties to perform services or create goods that traditionally were performed in-house by the company's own employees.