Which of the following statements is true when comparing the Solver setup of the transportation model to the setup of the transshipment model?
a. The "By Changing Variable Cells" box of the transportation model has one set of decision variables, while the transshipment model has two sets of variables.
b. The transportation model has one set of constraints, while the transshipment model has two sets of constraints.
c. As in the transportation model, there is a third constraint in the transshipment model that ensures that, for each warehouse, the amount of units received from plants equals the units delivered to retail stores.
d. All of the above
A
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As industry output increases, suppose that new knowledge about production technology spreads among firms in the area through direct contacts among firms or as workers transfer from firm to firm. Which concept does this example demonstrate?
a. internal economies of scale b. external economies of scale c. the home market effect d. specialization in production
Moskowitz Corporation has provided the following data for its two most recent years of operation: Selling price per unit$91 Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials$13Direct labor$7Variable manufacturing overhead$3Fixed manufacturing overhead per year$480,000Selling and administrative expenses: Variable selling and administrative expense per unit sold$6Fixed selling and administrative expense per year$84,000 Year 1Year 2Units in beginning inventory03,000Units produced during the year12,00010,000Units sold during the year9,00010,000Units in ending inventory3,0003,000The net operating income (loss) under absorption costing in Year 2 is closest to:
A. $224,000 B. $164,000 C. $80,000 D. $56,000
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Indicate whether the statement is true or false.