Dancause Corporation Manufactures and Sells a Single Product

question 39

Multiple Choice

Dancause Corporation manufactures and sells a single product.The company uses units as the measure of activity in its budgets and performance reports.During October, the company budgeted for 5, 100 units, but its actual level of activity was 5, 090 units.The company has provided the following data concerning the formulas to be used in its budgeting: The net operating income in the flexible budget for October would be closest to:

• A)$33, 869
• B)$25, 240
• C)$34, 003
• D)$25, 056

Identify strategies for managing wasted capacity and capacity shortages.

Calculate optimal pricing to maximize revenue in variable demand scenarios.

Understand the role of revenue management in maximizing supply chain profits.

Evaluate the trade-offs between selling in bulk or on the spot market.

---

Definitions:

Reinforcements

In behavioral psychology, stimuli that increase the probability of a behavior being repeated, which can be positive (adding something desirable) or negative (removing something undesirable).

Anhedonia

The diminished ability to experience pleasure or loss of interest in previously rewarding or enjoyable activities.

Bipolar Depression

A phase of bipolar disorder characterized by significant depressive episodes where an individual may experience a depressed mood, loss of pleasure or interest in activities, and other symptoms similar to major depression.

Social Rewards

Benefits gained from social interactions, such as approval or acceptance, that reinforce certain behaviors within a community or group.