Rancone Technologies, a laptop manufacturer, released a new laptop model priced at $800 to attract customers who could afford to pay the high price. After a few months, it introduced low-priced versions of the same laptop to attract new buyers. By doing so, it maximized profitability by targeting different segments of the market. In this scenario, Rancone Technologies has used the _____ strategy.
A. penetration pricing
B. everyday-high pricing
C. loss-leader pricing
D. skimming pricing
Answer: D
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Long-term capacity planning decisions such as the purchase of a new machine or construction of a new facility typically ______.
a. call for significant outlays of capital b. require approval from the supervisor of each shift c. need to be cleared by the government d. can be decided only by the board of directors
An order for 120 units of Product M has been made. There are currently 30 units of Product M on hand. Each M requires 4 units of Component N. There are 20 units of N on hand
(a) Calculate the net requirements for M. (b) Calculate the gross requirements for N. (c) Calculate the net requirements for N.
Jolie signs a contract with Keaton, an unlicensed physician, to perform a medical procedure. This contract is enforceable by
a. Jolie. b. Jolie's medical insurance company. c. Keaton. d. no one.
Provenzano Corporation manufactures two products: Product B56Z and Product D32N. The company is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products B56Z and D32N.Activity Cost PoolActivity MeasureTotal CostTotal ActivityMachiningMachine-hours$330,00015,000MHsMachine setupsNumber of setups$50,000100setupsProduct designNumber of products$88,0002productsOrder sizeDirect labor-hours 280,00010,000DLHsActivity MeasureProduct B56ZProduct D32NMachine-hours6,0009,000Number of setups8020Number of products11Direct labor-hours6,0004,000What is the activity rate for the Machining activity cost pool?
A. $74.80 per MH B. $36.67 per MH C. $55.00 per MH D. $22.00 per MH