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Title: Cobalt Company makes a household appliance with model number X500. The goal for 2015 is to improve p Post by: jerico on Mar 14, 2015 Cobalt Company makes a household appliance with model number X500. The goal for 2015 is to improve product design and outlook. No defective units are currently produced. Manufacturing conversion costs depend on production capacity defined in terms of X500 units that can be produced. The industry market size for appliances increased 10% from 2014 to 2015. The following additional data are available for 2014 and 2015:
2014 2015 Units of X500 produced and sold 20,000 20,000 Selling price $150 $170 Direct materials (square feet) 30,000 32,500 Direct material costs per square foot $10 $10 Manufacturing capacity for X500 (units) 20,500 20,500 Total conversion costs $451,000 $493,250 Conversion costs per unit of capacity $22 $22.5 Out of the two basic strategies, Cobalt's strategy is ________. A) product differentiation because Cobalt is able to produce a given quantity of output with a lower cost of inputs B) cost leadership because Cobalt is able to produce a given quantity of output with a lower cost of inputs C) cost leadership because Cobalt is able to increase its output price faster than the increase in its input prices D) product differentiation because Cobalt is able to increase its output price faster than the increase in its input prices Title: Re: Cobalt Company makes a household appliance with model number X500. The goal for 2015 is to impro Post by: cyborg on Mar 19, 2015 Content hidden
Title: Re: Cobalt Company makes a household appliance with model number X500. The goal for 2015 is to improve p Post by: jerico on Mar 23, 2015 This solved my problem perfectly, thank you for your kind input.
Title: Re: Cobalt Company makes a household appliance with model number X500. The goal for 2015 is to improve p Post by: cyborg on Mar 23, 2015 I'm happy to help you, how luck with the others, I noticed you've posted a lot of questions.
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