Both Saturn Technologies and Granite Inc. incur a cost of $200 to manufacture a single unit of a cell phone. However, Saturn Technologies charges a higher price than Granite Inc. does, but it still sells a higher number of phones. What does this imply?
A. Granite Inc. is not charging enough for its product.
B. Saturn Technologies creates more economic value than Granite Inc. does.
C. Saturn Technologies and Granite have achieved a competitive parity.
D. Granite Inc. has a competitive advantage over Saturn Technologies.
Answer: B
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Provide the journal entry to record the purchase of raw materials. Process costing is used.
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A. conflict of interest B. duty of loyalty C. community of interest D. duty of care
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