Thomas Company Has Only 25,000 Hours of Machine Time Each

question 103

Multiple Choice

Thomas Company has only 25,000 hours of machine time each month to manufacture its two products.Product X has a contribution margin of $50,and Product Y has a contribution margin of $64.Product X requires 5 hours of machine time,and Product Y requires 8 hours of machine time.If Thomas Company wants to dedicate 80 percent of its machine time to the product that will provide the most income,the company will have a total contribution margin of

• A)$250,000.
• B)$240,000.
• C)$210,000.
• D)$200,000.

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Definitions:

Adaptive Manufacturing

A flexible approach to production that can be quickly adjusted in response to changing market demands or technological advancements.

Lean Manufacturing

A systematic method for waste minimization within manufacturing systems without sacrificing productivity.

Six Sigma

A systematic, data-driven approach and methodology for eliminating defects in any process, aiming for six standard deviations between the mean and the nearest specification limit.

Real-Time

A mode of operation within systems where processes and data are updated immediately as events occur, ensuring current information is always available.