Use the Following Information to Answer the Question(s) Below -What Is the Gross Margin Per Minute of Rivets Manufactured

question 5

Multiple Choice

Use the following information to answer the question(s) below.
Cerebro Manufacturing produces four types of structural support fittings-plugs, rails, rivets, and clips-which are machined on two CNC machining centers. The machining centers have a capacity of 250,000 minutes per year. The gross margin per unit and machining requirements are shown in the spreadsheet below. $\begin{array}{|l|l|l|l|l|l|l|}\hline&{\text { A }} & \text { B } & \text { C } & \text { D } & \text { E } & \text { F } \\\hline& \text { Cerebro } && & & & \\1&\text { ManufacturingModel } & & & & & \\\hline 2\\\hline 3 & \text { Product } & \text { Plugs } & \text { Rails } & \text { Rivets } & \text { Clips }& \begin{array}{l}\text { Machine } \\\text { Capacity } \\\text { (mins./year) }\end{array} \\\hline 4 & \text { Gross margin/unit } & \$ 0.40 & \$ 1.20 & \$ 0.80 & \$ 1.10 & \\\hline 5 & \text { Minutes/unit } & 1 & 2 & 3 & 1.5 & 250,000 \\\hline 6 & \text { Gross margin/minute } & \\\hline 7 & \text { Maximum production } & \\\hline 8 & \text { Profit } & \\\hline\end{array}$
-What is the gross margin per minute of rivets manufactured?

• A) $ 0.60
• B) $ 0.73
• C) $ 0.40
• D) $ 0.27

---

Definitions:

Chris Argyris

A prominent American psychologist known for his contributions to the development of organizational learning, double-loop learning, and theories related to the behavior of organizations.

Mature Adult Personality

Refers to the characteristics and behaviors that are typical of fully developed individuals, often emphasizing emotional stability, self-awareness, and adaptability.

Classical Approaches

A set of management theories that emphasize the structuring of organizations for efficiency, focused on the formal organization and concepts like division of labor and hierarchy.

Analytics

The systematic computational analysis of data or statistics used to discover patterns, understand behaviors, and drive informed decision-making.