Capable, Inc What Is the Manufacturing Cycle Efficiency (MCE) of the Product

question 109

Multiple Choice

Capable, Inc., manufactures a product that goes through the following activities: $\begin{array}{ll}\text { Processing (three departments) } & 21 \text { hours } \\\text { Moving (four moves) } & 6 \text { hours } \\\text { Waiting time } & 10 \text { hours } \\\text { Storage time (before delivery) } & 19 \text { hours }\end{array}$ What is the manufacturing cycle efficiency (MCE) of the product? (Round answer to two decimal places.)

• A)0.42
• B)0.38
• C)0.21
• D)0.41

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Definitions:

Commercial Reasonableness

The standard by which business actions are judged, based on what a reasonable person would consider fair and appropriate under the circumstances.

Consequential Damages

Refers to the secondary effects or financial losses that occur as a result of a breach of contract, beyond the immediate scope of the agreement.

Substitute Goods

Products or services that can serve as replacements for one another, satisfying the same consumer need.

Perfect Tender Rule

A legal principle in sales law requiring goods delivered under a contract to exactly meet the terms, quantities, and quality specified by the buyer.