South Beach Industries reports the following information about resources. At the beginning of the year, South Beach estimated it would spend $180,000 for materials, $42,000 for purchasing, $35,000 for setups, and $36,000 for repairs.

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The unused resource capacity for purchasing for South Beach is:
A) $5,538.
B) $2,000.
C) $4,300.
D) $2,300.

Question

South Beach Industries reports the following information about resources. At the beginning of the year, South Beach estimated it would spend $180,000 for materials, $42,000 for purchasing, $35,000 for setups, and $36,000 for repairs.

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The unused resource capacity for purchasing for South Beach is:

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The unused resource capacity for purchasing for South Beach is:
A) $5,538. 
B) $2,000. 
C) $4,300. 
D) $2,300.

Quizplus · Accepted Answer

The unused resource capacity for purchasing is calculated by subtracting the actual resource usage from the total available capacity. In this case, the correct unused capacity is $4,300.

South Beach Industries Reports the Following Information About Resources