Santa Lucia Industries Employs 500 Workers in the Factory

question 55

Multiple Choice

Santa Lucia Industries employs 500 workers in the factory. These workers produced 85,000 units in 2016. Due to a special order, the units produced in 2017 increased to 95,000 units. However, Santa Lucia produced these units without adding workers. How is that possible?

• A) The labor cost associated with the additional units sold will be a relevant cost.
• B) The employees were a flexible resource in this situation.
• C) The plant had some unused activity capacity.
• D) none of the above

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Definitions:

Workman

An individual employed to perform manual labor or skilled trades, often in construction or industrial settings.

Provincial Personal Property

Property other than real estate, such as cars, furniture, or jewelry, that is subject to the laws of a specific province in Canada.

Security Interest

A legal claim or lien on assets, which secures payment or performance of an obligation to the asset's holder.

Bona Fide Purchaser

A legal term for a person who acquires property in good faith and without notice of any other party's claim to the title of that property.