Use the Following Information to Answer the Questions) Below -What Is the Maximum Production of Clips Based on the Manufacturing

question 48

Multiple Choice

Use the following information to answer the questions) 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. $\begin{array}{|l|l|l|l|l|l|l|} \hline&{\text { A }} & \text { B } &C&D&E&F\\\hline 1 & \text { Cerebro } & \\ & \text { Manufacturing Model } & \\\hline 2 & & \\\hline3 & \text { Product } & \text { Plugs } & \text { Rails } & \text { Rivets } & \text { Clips } &\begin{array} { l } \text { Machine } \\\text { Capacity } \\\text { mins./year) } \\\end{array}\\\hline 4 & \text { Gross margin/unit } & \$ 0.40 & \$ 1.20 & \$ 0.80 & \$ 1.10 & \\\hline 5 & \text { Minutes/unit } & 1 & 2 & 3 & 1.5 & 250,000 \\\hline 6 & \text { Gross margin/minute } & & & & & \\\hline 7 & \text { Maximum production } & & & & & \\\hline 8 & \text { Profit } & & & & & \\\hline\end{array}$
-What is the maximum production of clips based on the machine capacity?

• A) 250,000.00
• B) 83,333.33
• C) 166,666.67
• D) 125,000.00

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