Cavanaugh Co The Total Number of Gallons Input (Rounded)is:
A) 10,000 Gallons

question 56

Multiple Choice

Cavanaugh Co.has provided the following information for last year:
$$\begin{array} { | l | r | l | } \hline \text { Gallons input } & ? ? ? & @ \$ 20 \text { gallon } \\\hline \text { Labor costs } & 5,000 & @ \$ 20 \text { hr } \\\hline \text { Overhead costs } & \$ 110,000 & \\\hline \text { Gallons finished } & 8,000 & \begin{array} { l } @ \text { selling price of } \\\$ 55/ \text { gallon }\end{array} \\\hline \begin{array} { l } \text { Total factor } \\\text { productivity }\end{array} & 1.0732 & \\\hline\end{array}$$ The total number of gallons input (rounded) is:

• A) 10,000 gallons.
• B) 8,600 gallons.
• C) 7,450 gallons.
• D) 200,000 gallons.

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Definitions:

Substitute Resource

A resource that can be used in place of another, especially in production, to accommodate changes in market demand or supply conditions.

Productivity

A measure of the efficiency of production, often quantified as the ratio of output to input in the creation of goods and services.

Highly Substitutable

Referring to goods or services that can easily replace each other in consumption or use.

Unit Costs

The cost incurred by a company to produce, store, and sell one unit of a particular product or service.