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Following a strategy of product differentiation, Izzy's Limited Company makes a high-end Appliance, XT15. Izzy's Limited presents the following data for the years 2018 54,000
Following a strategy of product differentiation, Izzy's Limited Company makes a high-end Appliance, XT15. Izzy's Limited presents the following data for the years 2018 54,000 $670 156,750 $61 64,000 $6,784,000 $106 190 $3,054,250 52,000 Units of XT15 produced and sold $600 Selling price 153,000 Direct materials (square feet) $53 Direct materials costs per square foot 64,000 2017 and 2018 Manufacturing capacity in units of XT15 $6,400,000 Total conversion costs a $100 Conversion costs per unit of capacity 190 Selling and customer-service capacity (customers) $2,926,000 Total selling and customer-service Selling and customer-service capacity cost per customer $16,075 $15,400 costs 2017 Izzy's Limited produces no defective units but it wants to reduce direct materials usage per unit of XT15. Manufacturing conversion costs in each year depend on. production capacity defined in terms of XT15 units that can be produced. Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support. Izzy's Limited had 175 customers in 2017 and 180 customers in 2018 ?What is the revenue effect of the growth component U $3,780,000 F $3,780,000 U $1,200,000 F $1,200,000 B 3 Total factor productivity will increase if the company uses more total inputs per output the company incurs fewer costs per input current technology becomes obsolete technical productivity occurs . 79
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