Figure 13-5

question 91

Multiple Choice

Figure 13-5. Santorino Company produces two models of a component,Model K-3 and Model P-4.The unit contribution margin for Model K-3 is $6; the unit contribution margin for Model P-4 is $14.Each model must spend time on a special machine.The firm owns two machines that together provide 4,000 hours of machine time per year.Model K-3 requires 15 minutes of machine time; Model P-4 requires 30 minutes of machine time.
Refer to Figure 13-5.What is the amount of machine time for model P-4 in terms of percent of a machine hour?

• A)10%
• B)20%
• C)25%
• D)30%
• E)50%

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Definitions:

Assess Environments

The process of evaluating and analyzing external and internal surroundings that can influence the performance and strategies of an organization or individual.

Plan For Change

A strategic outline designed to guide the process of making alterations or transformations within an organization or system.

Artifacts

Objects made or used by humans, typically of cultural or historical interest.

Operating Routines

are established methods and procedures followed by an organization in its day-to-day operations.