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Question 9 2 out of 2 points for the past 12 years

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Unformatted text preview: Question 9 2 out of 2 points For the past 12 years, the Blue Company has produced the small electric motors that fit into its main product line of dental drilling equipment. As material costs have steadily increased, the controller of the Blue Company is reviewing the decision to continue to make the small motors and has identified the following facts: (1) The equipment used to manufacture the electric motors has a book value of $150,000. (2) The space now occupied by the electric motor manufacturing department could be used to eliminate the need for storage space now being rented. (3) Comparable units can be purchased from an outside supplier for $59.75. (4) Four of those who work in the electric motor manufacturing department would be terminated and given eight weeks' severance pay. (5) A $10,000 unsecured note is still outstanding on the equipment used in the manufacturing process. Which of the items above are relevant to the decision that the controller has to make? Answer Selected Answer: 2, 3, and 4. Question 10 2 out of 2 points The opportunity cost of making a component part in a factory with excess capacity for which there is no alternative use is: Answer Selected Answer: Zero. Question 11 2 out of 2 points Quality Chairs Inc. (QC) manufactures chairs for industrial use. Laura Winters, the Vice President for Marketing at QC, concluded from market analysis that sales were dwindling for QC's standard three-foot chair due to aggressive pricing by competitors. QC's chairs sold for $550 whereas the competition's comparable chair was selling for $495. Winters determined that a price drop to $495 would be necessary to regain market share and annual sales of 10,000 chairs. Cost data based on sales of 10,000 chairs: The current profit per unit is: Answer Selected Answer: $300. Question 12 2 out of 2 points During the sales life cycle, which is an example of what happens during the introduction phase? Answer Selected Answer: Question 13 2 out of 2 points During the sales life cycle, which is an example of what happens during the maturity phase? Answer Selected Answer: Question 14 2 out of 2 points The sequence of activities within the firm which begins with research and development, followed by design, and manufacturing, marketing/distribu tion, and customer service is the: Answer Selected Answer: Cost life cycle. Question 15 2 out of 2 points The sequence of phases in the product or service's life in the market - from the introduction of the product or service to the growth in sales and finally maturity, decline, and withdrawal from the market is the: Answer Selected Answer: Sales life cycle. Question 16 2 out of 2 points Quality Chairs Inc. (QC) manufactures chairs for industrial use....
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Question 9 2 out of 2 points For the past 12 years the Blue...

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