In Attempting to Improve Profitability When Faced with a Bottleneck

question 7

Multiple Choice

In attempting to improve profitability when faced with a bottleneck related to hours that is involved in the production of two or more products, which of the following is most important for management to consider?

• A) Contribution margin per unit for each product
• B) Time required for each different product passing through the bottleneck
• C) Selling price or sales revenue generated by each product produced through the bottleneck
• D) Contribution margin per bottleneck hour for each product

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Definitions:

Triskaidekaphobia

The fear of the number thirteen, often associated with superstition or cultural beliefs about bad luck.

Prefrontal Cortex

The part of the brain located at the front of the frontal lobe, involved in complex behaviors such as planning, decision making, and moderating social behavior.

Obsessive-compulsive Disorder

A mental disorder characterized by recurrent, unwanted thoughts (obsessions) and/or repetitive behaviors (compulsions).

Thalamus

A part of the brain located in the center of the brain, acting as a relay station for sensory and motor signals to the cerebral cortex.