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Just-in-time is an approach toward managing Select one: o A. inventories. o B. labor. O C. costs of production inputs. o D. production efficiency. Which
Just-in-time is an approach toward managing Select one: o A. inventories. o B. labor. O C. costs of production inputs. o D. production efficiency. Which of the following costs would be considered relevant when deciding between two products to produce? Select one: A. Level of direct materials required B. Additional investment in factory equipment for one product C. Amount of additional direct and indirect labor D. The opportunity cost associated with one or the other product O E. All of the above Which of the following are not relevant to the decision of whether to drop a business segment or not? Select one: A. Fixed overhead applied to the segment B. Revenues of the segment C. Variable costs of goods sold of the segment D. Variable operating expenses of the segment E. B and C only When using differential analysis to analyze two alternatives to the current operation, what factors should not be considered? Oa. Direct material costs that are different Ob. Direct labor costs that exist for only one alternative Oc. Overhead costs that are the same for both alternatives Od. Sales commissions that apply to only one alternative Special Order William A. Smith Pest Control, Inc. (WASP) currently provides pest control services to households in the local community. WASP has an opportunity to service 250 customers of another pest control firm that has also been selling in the community. WASP has the capacity to service 1,000 homes. WASP has an effective income tax rate of 30%. WASP's income statement, before consideration of the new opportunity, is as follows. Sales (750 homes at $230 per home) $172,500 132,000 Contribution margin 40,500 30,000 Operating income 10,500 3,150 $7,350 Variable service costs Fixed service costs Income taxes Net income In negotiating a price for the special opportunity, at what amount should WASP set the minimum per-home price? minimum per-home price
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