When using activity-based costing in a manufacturing setting, its distinctive feature is the focus on Select one: A. minimizing manufacturing costs. B. minimizing the number of journal entries related to the manufacturing process. C. materials handling. D. activities as the fundamental cost objects. E. materials sorting. Use the information below to answer the following question(s): Part 245 is a part used in the production of blenders at Andrew Corporation. The following costs and data relate to the production of Part 245: Number of parts produced 20,000 annually Fixed costs $40,000 Nariable costs $66.000 Total cost to produce $106,000 Andrew Corporation can purchase the part from an outside supplier for $4.25 per unit. If they purchase from the outside supplier, 40% of the fixed costs would be avoided. If Andrew Corporation purchases the part, how much will its operating income be? Select one: A $5,000 greater than if the company made the part B. $24,000 less than if the company made the part C. $3.000 less than if the company made the part D. $1,000 less than if the company made the part The higher the operating leverage factor, the Select one: A. more likely operating income is to stay constant. B. less the impact of volume on operating income. C. greater the impact of volume on operating income. D. greater the chance that none of the above occur. Testing a prototype of a new product is an example of an activity at which of the following levels? Select one: A. Batch-level activity. B. Organization-sustaining activity. C. Unit-level activity. D. Product-level activity. Use the information below to answer the following question(s): Kitchen Appliances Company manufactures two products: toaster ovens and bread machines. The following data are available: Toaster Ovens Bread Machines Sales price $100 $200 Variable costs $30 $150 The company can manufacture three toaster ovens per machine hour and two bread machines per machine hour. The company's production capacity is 1,200 machine hours per month. What is the contribution margin ratio for toaster ovens at the Kitchen Appliances Company? Select one: A 70.00% B. 25.0096 C. 130.00% D. 233.3396 The following information is for Lyceum, Ltd.: Total fixed costs Variable costs (per unit) Selling price (per unit) $142,500 $45 $70 If management has a targeted net income of $21,000 (ignore income taxes), then the number of units which must be sold is Select one: A. 5,700 B. 2,036 C. 2336 D6,540