Chamiching Makes Hacksaw Blades In the First Year, Variable Costs Accounted for Half of First

question 8

Multiple Choice

Chamiching makes hacksaw blades. Inventory values are determined using the first in, first out (FIFO) method. Production and sales data for the first three years appear below. $$\begin{array} { | c | c | c | } \hline \text { Hacksaw blades } & \text { Sold } & \text { Produced } \\\hline Y r 1 & 18,000 & 22,000 \\\hline Y r 2~ & 25,000 & 23,000 \\\hline Y r ~ 3 & 37,000 & 35,000 \\\hline\end{array}$$ $$\begin{array} { | c | c | c | } \hline & \text { Sales price } & \text { Full cost } \\\hline \operatorname { Yr } 1 & \$ 10.00 & \$ 6.00 \\\hline \operatorname { Yr } 2 & \$ 11.00 & \$ 6.60 \\\hline \operatorname { Yr } 3 & \$ 12.00 & \$ 7.60 \\\hline\end{array}$$ In the first year, variable costs accounted for half of the full costs. Total fixed production costs increased each subsequent year by 20%, as a result of step-fixed costs and a general inflationary price increase. For Chamiching, which of the following is true?

• A)The variable cost of Yr 2 ending inventory is $6,887
• B)The full cost of Yr 2 ending inventory is double the variable cost ending inventory
• C)There are 3,000 hacksaw blades in ending inventory
• D)The fixed cost per unit in Yr 3 is $2.72
• E)None of the above

Knowledge of product-line extensions and their strategic role in brand expansion.

Understand the principles and limits of the rights secured by the Bill of Rights.

Comprehend the distribution of power between federal and local governments, including police powers and regulatory authority.

Identify the constitutional constraints on legislative actions, including the necessity for congruence with the Constitution.

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Definitions:

Organizational Culture

The collective way in which an organization's members interact and work, deeply influenced by shared values and traditions.

Autocratic

A leadership or governance style characterized by individual control over all decisions and little input from group members.

Productive

Capable of producing a significant amount or result; efficient and effective in achieving desired outcomes.

Worker Oriented

Focused on or designed around the needs, satisfaction, and well-being of employees.