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Through a joint process, Fourco produces three separable products at a joint cost of $250,000. Units of Product X can be sold for $9.89 per unit. Costs associated with Product X are: Allocation of joint cost $4.29 per unit Costs after the split-off point 2.14 per unit Shipping cost 3.10 per unit A customer of Fourco has offered to buy all of the units of Product X at the split-off point and pay all related shipping costs. In order to maintain current profit levels, the lowest price Fourco should accept from the customer is O A) $3.46 O B) $4.65 O C) $6.43 OD) $9.89An augmented product is created when which of the following is added to the core product? O A) A price match O B) A new feature O C) An after-sales service O D) A complementary productThe CEO of a United States manufacturing company is focused on winning the Malcolm Baldrige National Quality Award for performance. The CEO has instituted evidence-based decision-making and process-management improvements. The CEO has a strict, randomized quality-inspection process using quantifiable metrics for finished products, and yet the number of defects per production cycle continues to rise. No changes to the inspection process have reduced the number of defects. The CEO is making the systems-thinking error of O A) assuming that quality can be built into the product at the final step of the process ( B) trusting quantitative measurements in the inspection process O C) focusing on process improvements O D) seeking external confirmation of the company's quality from an outside sourceAll of the following are factors that affect the price of a stock option EXCEPT the O A) beta value O B) stock price O C) exercise price O D) time to maturityMost marketing managers spend time studying consumers in order to understand their needs, wants, and behaviors. Which of the following statements represents the generally accepted conceptual view that marketing managers should have of consumers? O A) Consumers are market segments that need to be targeted. O B) Consumers are information sources for market research efforts. O C) Consumers are problem solvers who strive to satisfy their needs and wants. O D) Consumers are market segments that are constantly changing over time and place.The CEO of a company has been surprised by a shift in technology within the industry. The company continues to lose competitive position. According to management theory, the CEO would be best aided by O A) exploring a merger with competitors O B) instituting a strategic planning process that involves environmental scanning O C) relying solely on intuitive thinking O D) engaging in industrial espionageWhich of the following industries will most likely use job-order costing instead of process costing? O A) Aircraft O B) Lawn mowing O C) Paper production O D) Manufacturing of work bootsTwo mutually exclusive capital projects are being considered by the chief financial officer (CFO) of a small technology company. Both are unique, one-time approaches to the launch of a new software initiative. However, the first has a life of one year, and the second has a projected life of approximately four years. This has caused the net present value (NPV) and the internal rate of return (IRR) methods to suggest different project preferences. To make the best investment decision, the CFO should O A) rely on the accounting rate of return to make the selection O B) rely on the NPV method only to make the selection O C) ignore the NPV technique and choose the highest IRR in order to maximize absolute returns O D) use the profitability index (PI) method to rank projects and then choose the project with the highest PIEntrepreneurs usually focus on establishing and maintaining a young business and are often not sensitive to product life cycles. Small business owners who understand the product life cycle most likely O A) pay particular attention to cash flow O B) remain focused on their core competency O C) look for ways to improve their products and services O D) opt for low-cost strategies rather than differentiation strategiesA company's marketing research reveals that, while young professionals in Europe and North America seek out certified organic food products extensively, young Europeans shop much more frequently and purchase in smaller quantities. These results reveal which of the following similarities and differences in cultural dimensions? Similarity Difference O A) Values Behavior O B) Behavior Symbols O C) Symbols Values O D) Behavior ValuesEightco sells caramel popcorn in two sizes, regular and large, with the following selling price and variable cost per bag. Price/Cost Regular Large Selling price $2.00 $3.00 Variable cost $1.50 $2.00 If the firm has fixed costs of $144,000 and it breaks even by selling 225,000 bags, then the portion of large bags of popcorn it must sell is O A) 28% O B) 36% O C) 64% O D) 72%Using a change model that focuses on unfreezing, changing, and refreezing, the quickest path to change is generally by ( A) increasing driving forces O B) framing the situation differently O C) creating compassion for the other party O D) removing the obstacles that prevent change
