Consumers are less price sensitive when ________
A) price is only a small part of the total cost spent on the product over its lifetime
B) they perceive the higher prices to be unjustified
C) they change their buying habits regularly
D) there are many substitutes and competitors in the market
E) they are buying high-cost items
A
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Indicate whether the statement is true or false
Garrett Company manufactures coffee tables and uses an activity-based costing system to allocate all manufacturing conversion costs
Each coffee table consists of 15 separate parts totaling $125 in direct materials, and requires 2.0 hours of machine time to produce. Additional information follows: Activity Allocation Base Cost Allocation Rate Materials handling Number of parts $1.75 per part Machining Machine hours $2.00 per machine hour Assembling Number of parts $0.50 per part Packaging Number of finished units $2.75 per finished unit What is the total manufacturing cost per coffee table? A) $165.50 B) $40.50 C) $162.75 D) $30.00