Soap Company Manufactures Soap X and Soap Y and Can

question 23

Multiple Choice

Soap Company manufactures Soap X and Soap Y and can sell all it can make of either.Hours available to produce the products is the constrained resources.Based on the following data, if Soap could reduce the processing time for X by 10%, which of the following statements is true? $$\begin{array} { l c c } & \text { X } & \text { Y } \\\hline \text { Sales Price } & \$ 20 & \$ 25 \\\text { Variable Cost } & 14 & 15 \\\hline \text { Hours needed to process } & 3 & 5\end{array}$$

• A) It would take 162 minutes to process one unit of X.
• B) There would be no difference in the contribution margin per hour as compared to it before the processing time reduction.
• C) The contribution margin per hour for X would be $2.
• D) Soap Y would still be the most profitable.

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Definitions:

Electrical Signal

Electrochemical transmission used by neurons to communicate information throughout the nervous system and brain.

Decibels

A unit of measurement for sound intensity, representing the relative loudness of sounds.

Loudness

A measure of how intense or powerful a sound seems to a listener, often associated with volume.

Tinnitus

A condition characterized by hearing noises such as ringing, buzzing, or humming in the ears when no external sound is present.