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Author Question: Cobalt Company makes a household appliance with model number X500. The goal for 2018 is to improve ... (Read 60 times)

Cooldude101

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on: Mar 6, 2021
Cobalt Company makes a household appliance with model number X500. The goal for 2018 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 2017 to 2018. The following additional data are available for 2017 and 2018:

20172018
Units of X500 produced and sold20,00020,000
Selling price$150$170
Direct materials (square feet)30,00032,500
Direct material costs per square foot$10$10
Manufacturing capacity for X500 (units)20,50020,500
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 ________.
◦ product differentiation because Cobalt is able to produce a given quantity of output with a lower cost of inputs
◦ cost leadership because Cobalt is able to produce a given quantity of output with a lower cost of inputs
◦ cost leadership because Cobalt is able to increase its output price faster than the increase in its input prices
◦ product differentiation because Cobalt is able to increase its output price faster than the increase in its input prices
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by Cooldude101 on Mar 6, 2021

carlsona147

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Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Cooldude101

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Reply 2 on: Mar 6, 2021
Wow, this really help

TheNamesImani

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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