The Following Information Relates to Cranmore Manufacturing: to Produce a Unit

question 92

Multiple Choice

The following information relates to Cranmore Manufacturing: To produce a unit of product: Cutting department $\quad 5$ minutes per unit
Wel ding department $\quad 8$ minutes per unit
Polishing department $\quad 3$ minutes per unit
Finishing department $\quad 4$ minutes per unit There is a wait time of 5 minutes before the cutting department begins a batch, 15 minutes between the cutting and welding departments, a move and pre-wait between welding and polishing of 12 minutes, and a move and pre-wait between the polishing and finishing departments of 8 minutes.
What is the production rate?

• A)12 units per hour
• B)20 units per hour
• C)15 units per hour
• D)7.5 units per hour

---

Definitions:

Obligation

A legal or moral duty to do something or pay something, often within the context of contracts and agreements.

Compounded Semi-Annually

Involves calculating the addition of interest to the principal sum of a loan or deposit on a half-yearly basis, incrementally increasing the amount earned or owed.

Payment Stream

A series of payments made over a period of time, often in the context of loans or annuities.

Production Units

Quantities of output, such as goods or services, produced within a specified timeframe.