The use of theoretical capacity results in an unrealistically low fixed manufacturing cost per unit because it is based on ________

A) real available capacity
B) an unattainable level of capacity
C) normal capacity utilization
D) normal costing

Answer: B

Business

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You are about to undertake the manufacture of a labor-intensive electronics component. The first unit took 300 hours. You are not sure whether the learning curve is 70% or 80%. The initial phase of the contract calls for 6 of these components

a. How much time will it take to complete all six at 70% learning? b. How much time will it take to complete all six at 80% learning?

Business

Suppose the fund pays off its liabilities while at the same time the value of its assets doubles. How many shares will an investor who invests $50,000 receive?

What will be an ideal response?

Business